Would it surprise you to learn that you need cyber insurance?
When you hear the term cyber insurance, what comes to mind? For many, it’s a type of insurance reserved for a small few – a niche product for the high-tech industry. In actual fact, virtually any business that operates on a computer network that has employees and/or clients is a candidate for cyber insurance. Even homeowners should consider having it. At its core, cyber insurance is designed to protect businesses and individuals from Internet-based risks, and more specifically risks related to information technology.
We still have some learning to do
Relatively new on the insurance product scene, cyber insurance has only been with us since the early 90s, so it’s little surprise that so many people don’t realize its relevance to their daily lives. “You don’t know what you don’t know”, says Tim Tokrud, Vice-President at Gifford Carr. “The general public is still in the midst of a learning curve with cyber insurance. It’s our job to hammer home its importance.”
When an individual or company is struck with a hack or a data breach, the fall-out can be devastating. Personal information, financial information, confidential information – all forms of information that when accessed and exposed can have enormous adverse effects, ranging from lawsuits and bankruptcy to personal endangerment of those who’s data has been compromised.
It’s hard to ignore the statistics
In an eye-opening 2018 report by Price Waterhouse Coopers, it was found that in the past two years cybercrime has become the most reported crime in Canada at a whopping 46%, followed by asset misappropriation (38%) and fraud by the consumer (36%). The report goes on to say that “As the world becomes more digital, theft of assets is shifting to new channels and perpetrators, resulting in a permeation between online and physical environments, as well as the types of economic crime.”
Can you risk going without it?
Still not sure if cyber insurance is for you or your business? Consider the possible expenses you could be faced with in the event of a cyber attack. The costs associated with things such as data recovery, ransomware extortion demands, legal battles with clients, and preventative measures to avoid a future attack can all be mitigated with cyber insurance. Depending on your unique needs, you may be a candidate for first- or third- party cyber liability, or a combination of both.
Bottom line, the digital, data-driven world we live in today is rife with opportunity for cyber attacks. Opting out of cyber insurance is a risk that can spell the end of a business and put employees, clients, and even family in compromising positions.
Is it a risk you’re willing to take?
For more information on Cyber Liability Insurance click here or give us a call for a quote today.