Thanks to the World Wide Web, a whole new world has opened up for businesses in the Greater Toronto area. You can reach customers in other provinces and countries instantly, and this can greatly increase your business and profits. To protect yourself, you may have the latest antivirus and firewall programs in place. However, this may not be enough to keep high tech thieves from breaking into your computers and stealing valuable data. This is the reason that cyber insurance is so important today. Let’s look at an example.
Jim and Erma were not satisfied with their 9 to 5 jobs and started selling things on Internet auctions to make money. Erma had a flair for this kind of work and before long, she was buying and selling an enormous amount of things online. In fact, she eventually started Erma’s Online Gift Shop and turned it into a highly profitable business run from home. Her customers enjoyed the wide range of products and the personal attention from the expert gift wrapping services she provided.
Jim was interested in making money and didn’t want to spend any of the profits on business investments or insurance. He figured, because they were a home based business, they had very few risks to be concerned with. However, Erma had business training and she knew to seek out an experienced risk management professional for advice on the best kind of insurance protection, including cyber liability insurance.
Erma contacted the independent insurance agent that they used for their home and auto insurance. He sat down with her and showed her the best insurance options for her needs. In addition, he talked about the importance of taking out cyber risk insurance, and because all her business was conducted online, she was vulnerable to cyber criminals.
A few months went by and Erma’s Online Gift Shop continued to thrive and expand. She had a long list of customers and many of them were repeat customers. Then one day, she realized her website had been hacked and someone accessed her customer data base. The thieves were able to get credit card numbers and personal information about her customers. This resulted in a series of claims and lawsuits, but because she had the foresight to buy cyber security insurance, her claims were eventually settled and the business remained intact.
What is Cyber Insurance?
Cyber coverage involves the Internet and computers. If you have access to the World Wide Web, criminals may be waiting to steal information. Cyber coverage helps to reimburse you for the many repercussions Internet based crimes may trigger.
Who Needs Cyber Liability Insurance?
Security breaches are a common occurrence these days. When this happens, it can damage your public image and your customers may be afraid to do business with you. Almost any company in the 21st Century is vulnerable to cyber attack. This includes small operations and major corporations with data bases. It also includes healthcare and legal services.
What is a Standard Cyber Risk Insurance Policy?
A standard cyber policy may include:
- Third party liability insurance – this is not like auto liability. It is sometimes referred to as media liability. For instance, you operate a website hosting service and your server causes damage to websites on the network. You could be responsible for damages.
- Data breach management services – if you experience a breach in security you could be hit with a number of expenses like customer notification, credit checks, investigation services, remediation services, and legal expenses. This kind of cyber security insurance helps to pay for these things.
- Network security expenses – if your system is hacked it can result in many problems like access denial for other users. This insurance may also cover financial losses associated with data theft.
- Cyber attack damages
- Crisis management services – this can be an invaluable part of your cyber insurance policy. It can pay for fees to help you get control of the situation and manage the crisis successfully.
Cyber Liability Insurance Options
- Extortion liability insurance – Internet criminals hack into a system and demand money, or they will cause major damage. This kind of extortion can be covered.
- Malicious actions of employees – this will cover issues like cyber crimes committed by your own staff.
- Professional liability insurance – can take care of issues associated with security breaches.
Getting the Right Cyber Risk Insurance Protection
When you need the right kind of business liability insurance, you can come to Multi risk Insurance Brokers for help. We are here to remove all the hard work from finding business insurance. We work for you and not the insurance company. Multi risk Insurance Brokers has access to many excellent Canadian insurers and we will check out all of them and bring you back the most affordable and comprehensive coverage.
Our insurance professionals understand the importance of cyber security insurance and can help you make the right decisions. We are also there with professional financial planning and risk management services. With Multi risk Insurance Brokers as part of your risk management team, your job just got much easier.
To get details about insurance quotes, fill out our quote form today. In the Greater Toronto area, call 416-224-2800.