Lions and Tigers and Cyber Insurance

 

cyber security insurance

Oftentimes, sales strategies in insurance can be based on fear tactics. It is unintentional, but insurance is by its very nature, there to protect you when really bad things happen!

Cyber-attacks, cyber hacking, social engineering fraud and many other tactics are happening personally and to businesses every day. It is not fear mongering; it is fact. You can search many of these details online. (Although due to earlier legislation in the U.S., most of the data you find will be based on that countries metrics. Legislation has been developed later in Canada so many attacks have gone unreported. Don’t make the mistake of thinking that the risk stops at their border.)

However, a much more proactive use of your time would be to understand your specific risks, analyze your risk tolerance and make a decision with your business insurance broker, based on that, rather than fear. It is very important that you work with a business insurance broker who truly understands cyber liability insurance. It is relatively new and complicated, with different companies offering different levels of protection for widely varying prices.

  • How long could my business be shut down by an event?
  • What are my client notification obligations are under the new legislation in Canada?
  • What other legislation applies if I sell in other countries?
  • Do I have obligations to my suppliers while my business is inoperable due to this cyber event?

These are just a few of the many questions and factors to be considered, allowing you to quantify the risk and discuss with your cyber insurance expert.

Rather than basing decisions on fear, this should allow you to make an informed decision on how much risk you are willing to take in your business, and how much you should transfer by way of a cyber liability insurance policy. It can also point out some risk mitigation strategies that may help protect your business, without additional insurance premiums.

Talk to one of our cyber insurance experts for more information about how you can protect your business from online threats.