What is Cyber Insurance?

Cyber Liability Insurance is a type of coverage that offers options to financially mitigate the expenses to defend your company and any damages resulting from your liability to a 3rd party, or for regulatory fines & penalties, multimedia wrongful acts (such as infringement, defamation, piracy, etc.), and Payment Card Industry (PCI) fines & assessments resulting from a failure in your security, data breach, or privacy violation.

What else can Cyber Insurance Cover?

Coverage options are also available for the following 1st party losses:

Computer Replacement - The Cost to replace your computer systems that are permanently impacted by malware.
Fund Transfer Fraud - Funds transfer losses you incur from a failure in your security or social engineering.
Service Fraud - For the additional amounts you’re billed by a cloud or telephone provider when you incur fraudulent charges.
Digital Asset Restoration - For the costs to replace, restore, or recreate your digital assets that are damaged or lost following a failure of your security.
Business Interruption & Extra Expenses - Financial losses resulting from a failure in your security, data breach, and even systems failure (including contingent/dependent organization Business Interruption), as well as the extra expenses you incur to bring your company back online.
Cyber Extortion - The costs to respond to an extortion incident, including money, securities, and even virtual currencies paid.
Breach Response, Crisis Management, & Public Relations - The costs to respond to a breach including 3rd party incident response and public relations experts, customer notification costs and credit monitoring, media purchases, and legal fees; and advise in connection with the incident, among others.

Finding the right Cyber Insurance coverage requires the assistance of a broker with knowledge and experience in this class of insurance.

Why do I need Cyber Insurance?

In 2019 the Insurance Bureau of Canada (IBC) published the findings of its latest report on cyberattacks against small businesses. IBC completed a survey of 300 small and medium-sized business owners (businesses with fewer than 500 employees). The survey found that 44% of these businesses do not have any sort of defence against possible cyberattacks. The poll also found that 60% of the respondents said that they have no insurance to protect them in the event of an attack.
Other key facts from the study include:

Almost one in five businesses (18%) said that they have been affected by a cyberattack or data breach in the last two years.
37% of businesses affected by a data breach estimate that the attack cost them more than $100,000; 20% said they have no idea of the cost of the attack.
50% believe that their business may be vulnerable to a cyberattack, while 56% said they are concerned about how a breach could affect their business.

Why should I choose AC&D for my Cyber Insurance needs?

AC&D employs professional brokers with expertise in the area of Cyber Insurance. Our experience in this class allows us to find the best coverage for your business at the best price. We represent over 20 standard market insurance companies and over 100 insurance intermediaries, including coverholder agreements with Lloyd’s (of London).

How much does Cyber Insurance cost?

Many insurance companies now offer a basic cyber extension that can be added on to an existing policy for as little as $100. A standalone cyber insurance policy can cost as little as $350 depending on the individual risk factors for your business.