Today every business using computers and dependent on the internet is vulnerable to cyberattacks.
What is a cyberattack?
A cyberattack is a malicious and deliberate attempt that seeks to target your computer information systems, networks, PCs and laptops and make them dysfunctional. The intent is mostly to cripple your business operations by stealing, altering, or destroying your valuable data, and holding you to ransom, unless you pay up. A cyberattack can occur anytimeand targets mostly those organisations whose business information systems are vulnerable.
How big can be the loss from a cyberattack?
Data available with the Canadian federal government shows that a single cyberattack can cost a business an average of $15,000. These expenses include the costs of business that is lost due to the firm being unable to use its computer systems, and costs involved in evaluating and repairing the hack, notifying clients and legal fees.
Is my business liable in case of a cyberattack?
In case confidential and sensitive customer information (such as credit card numbers) is compromised during a cyberattack, then as a business owner, you can be sued. Since all business owners and their employees use computers, mobile phones and tablets to run their day-to-day business operations, it makes sense to protect your business with cyber insurance.
Against which losses can I protect my business from cyber attacks?
Below are the risks that you can cover with cyber insurance:
– Loss arising from a virus in your computer system that locks you out, erases your data or results in ransomware. Ransomeware keeps you logged out until you pay a certain amount of money.
– Cost to repair your computer system and amount of ransomware attack, depending upon the insurance policy.
– Legal fees in case you are slapped with a lawsuit by a customer whose sensitive information (such as credit card numbers) got leaked and they received extra charges on the card.
– Costs involved in notifying your customers that you have been hit by a cyberattack and restoring your email list.
I am a business owner and have business liability insurance. Does this not include cyber insurance?
Business insurance and cyber insurance are two different types of insurance covers. Business insurance in Canada does not cover the losses arising from cyberattacks. Business insurance covers your 3rd party liability which means for examples, if your customer got injured, or had bodily injury or damage to their property from your business, then you could be sued. Therefore, it is worthwhile to buy cyber insurance.
Does cyber insurance cover the cost of lost revenue if my business is impacted by a cyberattack and I am unable to use my computer?
Such a damage is covered by business interruption insurance, that can be added in a business insurance policy. However, some cyber insurance policies do cover damages due to business interruption.
What sort of business insurance cover in Canada should I take to make sure I cover my main exposure?
The best way is to engage a commercial insurance expert such as Beneficial Insuranc Solutions based in Calgary, AB. They will understand your needs and propose a customised cover that that is fit for you and easy on your pocket.
Are there any best practices to protect my business from cyber attacks?
Yes, even though you might have taken a business insurance cover in Canada alongwith a cyber insurance cover, it is worthwhile to follow some golden rules:
– Never click on links unless they are legitimate.
– Hover your mouse over the link. It may reveal a different web/ email address.
– Share information about fishy emails with your team so that they are alert.
– Use secure networks if company information needs to be accessed from a location outside office.
– Change passwords regularly and make them difficult.
– Take regular backups of important data.
– Keep your laptops and PCs in secure locations.
– Encrypt data within your organisation.