Cyber and data breach insurance for businesses of all sizes
There are many different cyber risks that can impact a company and its ability to serve its customers. Whether it’s phishing attacks, denial-of-service attacks, ransomware or other types of malware, we have insurance packages that provide expert recovery of your electronic files, customer data, credit card information, passwords and other sensitive data. Our affordable plans also cover lost revenues because of downtime and PR support for any reputational damage. One in five Canadian businesses are hit by cyberattacks each year. We can help.
What businesses need cyber liability insurance?
This coverage has become essential for all businesses, regardless of size or industry. If you have a website, send electronic communications, use point-of-sale systems, or store customer payment or other personal information electronically, cyber insurance is a necessity. As a trusted brokerage for over 70 of Canada’s top insurance companies, we have access to some of the best cyber coverages and rates in Canada. Talk to one of our cyber insurance brokers for a quote.
How much do cyber breaches cost businesses?
Hacks and cyber breaches come in many forms and impact businesses in different ways. Key factors in how much a breach will cost include business size and industry, the amount of data and customer records being stored electronically, and how long it takes to discover and fix the breach. On average, the total cost of a breach is about $270 per existing and prospective customer in a business database. For example, a breach of 700 customer records could cost around $200,000.
What does cyber insurance cover?
There are a lot of coverage options depending on the size of your business and your specific needs. It generally includes:
Data recovery and ransoms
Covers costs for diagnosing the breach, recovering data, restoring systems and removing malicious code. If you’re locked out of your systems and recovery is not possible, ransom fees are covered.
Lost revenues and business interruption
Covers any immediate revenue losses because of a data breach or ransomware lockout. It can also include lost revenues while your e-commerce site or other electronic systems are down.
Legal fees and court-awarded damages
Covers fines related to regulatory requirements if a breach exposes customer data. Also includes coverage for legal fees, settlements and court-awarded damages if you’re sued because of the breach.
Public relations and reputational recovery
A hack or breach can erode customer trust. This provides coverage for public relations support to protect or rebuild your company’s reputation during and after a breach.
Cyber insurance also helps with costs related to notifying customers about the breach, credit monitoring services for impacted customers, lost funds if your company falls for a phishing scam, data breaches involving stolen or lost paper records and more.
Frequently asked questions about cyber insurance:
How much is cyber insurance?
Premiums for cyber insurance start around $500 a year and depend on:
- The level of coverage your company requires
- The exact nature of the business
- The number of customers you have
- The annual revenues of the business
What is not covered by cyber insurance?
Like any insurance, cyber policies contain exclusions, meaning circumstances or risks that are not covered. Here are few examples of things that are usually not covered:
- Losses related to an undetected breach that happened before you bought the policy (although you may be able to add this coverage)
- Costs related to upgrading your system security to prevent future hacks or breaches
- Electronic theft or fraud committed by employees (this is covered by crime insurance)
- Losses resulting from a failure to maintain cybersecurity standards (your broker will ask about these standards when you apply for cyber insurance
How much cyber insurance do I need?
It can vary depending on your business, its industry, the cybersecurity protections you already have in place, the amount/type of personal information or customer data you handle, and the potential estimated cost of lawsuits, data recovery, and fines you could face if something happened.
Is cyber insurance worth it?
Yes, cyber insurance is worth it for any business that handles customer data or stores information about customers or the business itself digitally. The average cost of a data breach in 2022 was $7.6 million, up from $7.3 million the previous year.
Who needs cyber insurance?
Any business, as long as it uses some form of technology, may be at risk of cybercrime. Cyber insurance can be especially important for:
- Businesses that store valuable data digitally.
- Businesses with larger customer bases.
- Businesses with valuable digital assets or high revenue.
If you are questioning whether your business needs cyber insurance, discuss with a Mitch insurance representative. They will be able to assess your risk level once they’ve gotten to know your business.
How big of a problem is cybercrime?
One in five Canadian businesses are hit by cyberattacks every year. These attacks continue to increase in frequency, and they’re also becoming more targeted and complex. Because most cyber criminals use bots to probe thousands of websites at a time for weak spots, every business is at risk, regardless of its size.
If your business does suffer a major hack or data breach, without cyber insurance, the consequences can be dire. Stats show that 60% of small companies go out of business within six months of a cyberattack or data breach due to the high recovery costs, the reputational damage to their brand and more.
We work with the best cyber insurers in Canada, who offer not only payment for your losses but an elite cyber-recovery team that includes experts in IT security, data forensics, privacy law, public relations, negotiation (if hackers ask for a ransom) and more. Buying your cyber insurance through Mitch means that you’ll have this team in your corner when and if you need them, to minimize downtime, reduce your liability, safeguard your brand and comply with all relevant laws.
Doesn’t my business liability insurance cover data breaches?
No. Most commercial general liability policies specifically exclude losses related to electronic data, websites and other electronic communications.
Does cyber insurance cover ransom payments?
Yes. If hackers impersonate you and one of your employees sends them money, that’s covered by cyber insurance. This is a common scam where hackers find information about a business owner or executive, and create very believable communications asking staff to send credit card information or e-transfers.
Will my premiums go up if I make a claim?
Typically, one small claim won’t impact your premiums, but multiple claims over a short period of time could lead to premium increases at renewal. We’ll work with you to help minimize your cyber risks, and can provide advice on whether to submit minor claims to keep your premiums manageable and maximize the value of your coverage.
Your business is unique, so are your insurance options.
Being a brokerage for over 70 of Canada’s top insurers means we have access to a wide range of insurance solutions as unique as your business – at some of the best rates in Ontario. Want to learn more about the coverage options available to you? Here’s a few of them.
