Cyber and Data Breach Insurance for Businesses: Are you protected?
Heavy reliance on today’s computer and data technology has increased every business’ risk of a data breach or cyber attack. Both have become increasingly frequent and costly.
Virtually every business has data on clients, employees, and other which can be stolen, electronically hacked or lost through accidental or inadvertent release.
Recently passed federal legislation, Bill S-4 (Digital Privacy Act) amending PIPEDA (Personal Information Protection and Electronic Documents Act) legislation, will require businesses in Canada to notify affected individuals whose personal information may have been breached.
How does Cyber and Data Breach Insurance protect business owners?
Cyber and Data Breach insurance is designed to help small and medium-sized businesses:
- Investigate a data breach
- Notify customers and provide credit flagging
- Case management and other services that help prevent theft and fraud following a breach
- Protect against lawsuits brought against a business as a result of a data breach
Examples of Data Breach and Cyber claims and how Insurance can respond:
- Gas station: Identity thieves used card skimmers at a gas station to steal bank account numbers with PIN codes from 550 customers. They then created false debit cards, using the stolen information to drain funds from client accounts. Cost of notification and services: $19,000
- Apartment: A box of rental applications with the names, addresses and Social Insurance Numbers of 2,600 individuals was stolen from an apartment building office. Cost of notification and services: $91,000.
- Hotel: The credit card records of a hotel and business conference center were breached by malware that thieves placed on the computer system. Cost of legal and forensic IT review: $5,000
Cost of Coverage
Insurance coverage for Data Breach and Cyber claims can be included in our comprehensive business insurance packages, with premiums starting as low as $47 for $50,000 coverage limit (with $1,000 deductible).
Would you like an insurance quote or more information about how to protect your business? Please contact Habitat Insurance Agencies at 604-438-5241 or email. One of our professional brokers will be happy to assist you.
All rights reserved. Disclaimer: This article is designed to provide information for personal use only. Please consult your professional insurance broker for further professional advice. Habitat Insurance Agencies Ltd is not responsible for any legal disputes of this matter.