Cyber Risk Insurance minimizes the financial damage an organization may suffer as a result of a cyber attack, whether it be a ransomware event, a data breach or a network compromise. The types of cyber risk policies are very diverse in terms of how they operate and the protection they offer. Please find a list of typical protections below.
Moreover, whether you're self-employed, a company, a cooperative or a non-profit organization, and if you collect or use personal information through your activities, you must comply with Bill 25 (An Act to modernize the legislative provisions governing the protection of personal information). This new law aims to protect the Quebec population by making companies more accountable for the personal information they hold, and clearly defines your responsibility to protect personal information.
The Main Benefits of Cyber Risk Insurance
- Extortion;
- Hardware replacement;
- Repair costs;
- Expertise fees;
- Legal fees;
- Risk management fees;
- Data recovery costs;
- Damage to reputation;
- Cyber Liability.
Claims Example:
A hacker infiltrates a company's network and holds its entire database to ransom. The company can no longer access its phones, e-mails and/or files. The company loses 3 weeks' revenue. It also has to negotiate and pay the hacker. As the hacker collects the money, he takes the opportunity to demand a second ransom. The company enters a downward spiral and has no idea how to deal with the crisis. If the company had Cyber Risk Insurance, the insurer would have provided a crisis management firm to help manage the crisis internally, handle the ransom and/or defend the customer if third parties have suffered damage.
Who can Subscribe to Cyber Risk Insurance?
- Any company hosting, trading or storing sensitive information;
- Any company using a system for its business activities, including accounting and human resources management.
Why Subscribe to Cyber Risk Insurance?
- Access to experts in the event of a computer attack;
- Pay defense costs, as well as compensation payable in the event of lawsuits or class actions;
- Pay costs associated with taking charge following a computer attack.
Here are a few statistics from a study carried out by IBM Security: 83% of companies have been victims of a data breach.
- 45% of breaches occurred in the cloud;
- It takes a total of 243 days to identify the breach and a further 84 days to neutralize it;
- The average cost to Canadian companies of a data breach has increased by more than 1.5 million since IBM began its survey in 2015;
- According to Coveware (with conversion from $US to $CA), the average ransomware extortion payout in 2022 was nearly $300,000;
- There are a host of studies and statistics on the subject. Among them, we recommend the National Cyber Threat Assessment issued by the Canadian Cyber Security Centre.
