Cyber insurance brokers and cyber liability insurance are both gaining importance in the business landscape in Alberta. The reason for this is our growing dependency on computers for carrying out day-to-day work, and the need to store data on the cloud and leverage new-age technologies in transmitting and making use of this data.
On the other hand, this rapid growth also exposes the vulnerability of devices and systems to security lapses and data breaches which fuel the risk of cyber attacks.
Since traditional business liability policy does not cover risks from cyber exposure, it is here that cyber insurance brokers step in and guide their clients throughout the process. They make you aware of the potential cyber liabilities that your company faces and are able to recommend you a cyber liability insurance policy that fully meets your needs and budget.
Below are some of the risks that are typically covered by a cyber liability insurance policy:
Cyber attacks and data breaches
Business owners across Alberta are responsible to protect their clients’ sensitive data including personal information.
That is because now there is a law in Alberta that requires business owners to notify details of the affected parties in the event of a data breach. Costs associated with such a breach are added to other costs that are incurred by the affected parties in fixing the security breaches, identitfying theft protection and taking measures to themselves from possible legal action.
While companies doing online business are at a risk, even companies that store sensitive data in electronic form are vulnerable to cyber attacks and breaches that occur due to data lost to unauthorized employee access or hardware theft.
Infringement of IPR (Intellectual Property Rights)
In this cyber age, your Alberta business, especially your online presence such as your company’s website, blogs, or social media are in some way vulnerable to malicious cyber attacks. This can include libel, copyright or trademark infringement and defamation, among other things.
Damages caused to systems of a 3rd party
In case you send an email or other types of data electronically to another company and this transmission from your server causes the system of that company to crash because there was a virus in your information, then you could be held liable for the damages.
You would also be held responsible where you are an independent software producer, and the software built by you fails, or does not perform the required functions, and thus causes loss to the party who purchased your software.
System failure leading to losses
Events such as a natural disaster, malicious activity or fire could cause physical damages to your system and these damages could result in a loss of data, code or important information.
Your current business liability policy will provide you coverage only for the physical danages that have occurred to your system. It is your cyber liability insurance policy, however, that will cover your loss of data, code and important information.
There can be instances of cyber attacks where professional hackers gain unlawful access to your website and take control of its functions. In such a situation, you and your customers will be denied access and you will be subject to cyber extortion by the hackers.
You will stand to lose your valuable stored data, sensitive information of your customers including their personal details, unless you pay some amount of money to the hackers.
Such a cyber attack can cause a temporary loss of revenue to you and you may also incur costs to pay the amount of money demanded by the hackers.
If your day-to-day work involves the use of computers, then a cyber attack can be fatal to your business, or to any third party that is dependent on your products or services.
That’s because a cyber attack causes your server to fail, results in a breach of data, and in some cases also restricts your access to other websites. All this cripples your activity to transmit data and your business comes to standstill causing an immense loss of business revenue to you and to other third parties.
Further, your precious time as well as the time of your other employees gets directed towards fixing the cyber attack and this causes further revenue losses to you.
By engaging a cyber insurance broker and buying a cyber liability insurance policy, you can rest assured that your cyber risks are adequately covered.