Cyber Liability Insurance

cyber liability insurance

Almost half of all Canadian Adults have been victims of cybercrime. High profile cyber liability data breaches have been highlighted in the media: Home Depot, Target, Adobe, Ebay, US military, TJ Maxx, Apple iCloud, Canada Revenue Agency… the list gets bigger every day. If big businesses can be attacked, so can yours. This is why it is more important than ever to have cyber liability insurance to cover yourself and your business.

What is Cyber Liability?

Cyber liability insurance protects the interests of a first party and third party with the risks associated with e-commerce, e-business, the Internet, networks, and information assets. There are various risks that businesses need to protect themselves from. For example a business’s intellectual property can be hacked or breached, the privacy concerns of a business’s data can be hacked, or an employee can send a virus in an email unknowingly.

Here are some common Cyber Liability examples:

  • You unknowingly email a virus or some type of malware to your clients via an email
  • You do not follow the provincial, federal and privacy commissions guidelines in reporting to your customers that a data breach occurred
  • Your lost or stolen laptop leads to the theft of cyber data
  • You have an employee that posts copyright material onto the company website or slanders another company on social media

The true costs of cyber liability crime

  • Litigation costs for third party lawsuits
  • The disruption of the business’s normal everyday operations
  • Reputational harm which can be further sensationalized by the media
  • The costs associated to prepare, maintain and mediate cyber liability lawsuits
  • The destruction and loss of property
  • The cost of fines, regulatory fines, corrective actions, criminal fees and judgements

According to Symantec, in 2012, 46% of Canadian adults were victims of cybercrime resulting in a total net cost of $1.4 billion dollars. It is estimated that the cost associated with cyber crime more than doubled in 2013 to $3 billion dollars. Worldwide, the internet economy generates $2 trillion dollars in sale transactions. It is estimated that cyber crime extracts $445 billion dollars of these sales.

Want to know more?

Without proper insurance for cyber liability your business could face serious losses. Contact the cyber liability insurance professionals for more information or for your free quote at Absolute Insurance in Orangeville.

Get Your Quote Today!

Call 1-877-941-2266 or fill out this form and we will personally call you and help you with your insurance needs.