Cybersecurity insurance common among businesses

Author: Jack Churchill Posted on: 16.10.2015
Credit: https://www.flickr.com/photos/yusamoilov/15462325023/

Credit: https://www.flickr.com/photos/yusamoilov/15462325023/

OTC Insurance Brokers Inc. sells cybersecurity insurance to its clients in Halifax, Nova Scotia. This week’s post looks at the popularity of cybersecurity insurance.

Do you have cybersecurity insurance? According to a new survey, roughly six out of 10 global businesses have it.

So, what is it?

Cybersecurity insurance covers businesses in the event of a data breach. With practically every business today being connected to the internet (and many doing business online), this opens pretty much all businesses to the threat of a cyber attack.

The tab for getting over a cyber attack is expensive. For small businesses, it’s about $38,000 USD on average, and that doesn’t even include the cost to a business’ reputation, as well as staffing, training and IT infrastructure upgrades that will need to be made to prevent future attacks from happening.

How common are cyber attacks?

Well, it’s tough to say because there’s no legal requirement for companies to report an attack in Canada, “but security company Websense said in August 2014 that 36 per cent of Canadian businesses had observed a breach in their IT security last 12 months,” said an Oct. 14 Canadian Press article.

What does cybersecurity insurance cover?

 

A complete cybersecurity insurance package from OTC Insurance Brokers Inc. includes three elements.

The first is a legal liability component to protect your business against lawsuits stemming from a data breach.

The second element is a business interruption component and it compensates your business for the lost revenue that comes from the down time associated with a data breach.

The final element covers breach notification costs.

Cybersecurity insurance is a must for today’s businesses. OTC Insurance Brokers Inc. would be happy to tell you more about the coverage, so get in touch with us, but if this blog post has sold you on it, you can begin the process of applying for coverage through us.

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