Cyber breach insurance attacks in Canada

Author: Jack Churchill Posted on: 02.11.2015

OTC Insurance Brokers Inc. is an insurance broker based in Halifax, N.S. offering cyber breach insurance. This week’s blog post looks at the prevalence of cyber attacks on Canadian businesses.

I just read an article about cyber breaches that used a very interesting analogy. It likened big attacks like that of the Ashley Madison hack to being like a car in a crash that is a total write-off. The source in the article said that companies also need to have coverage for smaller attacks, which he called “the fender-benders of cybersecurity.”

“The number of attacks are rising, the severity is rising, and when they come, they’re more difficult to deal with,” Duncan Stewart, the director of technology research at Deloitte said to Canadian Insurance Top Broker.

Traditionally, understanding how many Canadian companies have been hit by a cyber breach has been difficult to determine because there is no legal requirement for companies to report it.

However, some new research is shedding some light on the topic. It says that nearly nine in 10 (87 per cent) businesses experienced a hacking attack last year. In the U.S., it was 69 per cent of businesses.

The research was conducted by The Boiler Inspection and Insurance Company of Canada.

Interestingly, the research found 42 per cent of Canadian businesses do not have cyber breach insurance.

This is a startling discrepancy. Think about it. Almost nine out of 10 Canadian businesses are getting hit with cyber breaches each year, but just over four in 10 Canadian businesses are getting cyber breach insurance.

Businesses need to be thinking more about their cyber security and their cyber breach insurance needs. For any business that’s connected to the internet (which is most), it should be a must, especially given the costs of an attack (both the tangible costs and the intangible ones like the damage to one’s reputation are so costly).

Cyber breach insurance

 

Get in touch with OTC Insurance Brokers Inc. and we can help you sort out your cyber breach insurance needs.

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