Buy Cyber Liability Insurance in Ontario from Aaxel Insurance Brokers Ltd.
Cyber Liability Insurance
Even a few years back cyber liability insurance in Ontario was hardly discussed in the context of small businesses. As the extent of digitalization continues to increase over time so are cyber liability-related claims.
Every day, new cyber-crimes are challenging how we think about cyber risk exposures and the scope of cyber liability.
The risk is rapidly growing with each passing day. It does not matter how big or small your company is as cyber-liability protection is critical to safeguarding your business.
At Aaxel Insurance Brokers Ltd., we are relentlessly engaged in empowering you with the right type of cyber liability insurance in Ontario at the most competitive price.
- What is cyber liability risk?
The potential of loss or harm related to technical infrastructure or the application of technology within an organization is known as cyber risk. In simple terms, cyber risk is commonly defined as exposure to harm or loss resulting from breaches of or intrusions on information systems.
- Who should have cyber liability insurance in Ontario?
Almost all types of business require cyber liability insurance in Ontario, including though not limited to the following:
- Website operators and e-retailers
- Healthcare providers
- Leisure and entertainment companies
- Manufacturers and wholesalers
- Professional service companies
- Educational institutions and
- What is cyber liability insurance?
Cyber liability insurance in Ontario covers financial losses that result from data breaches and other web-based events. Most cyber policies include coverage for first party as well as third party. Certain kinds of coverage for cyber liability may be included by default whilst others are available a la carte.
First-party coverage pays expenses your firm directly incurs from any breach, such as the cost of informing your clientele about a hacker attack. Third-party coverage applies to claims against your firm by people or companies that have been injured because of your actions or failure to act. For instance, when a client sues you for negligence after a hacker steals his or her user information from your computer system and releases it online.
Most Popular Types of First-Party Coverage
Here are the major types of first-party coverage you are likely to find in a cyber-liability policy and they may be subject to a deductible.
- Loss or Damage to Electronic Information
It covers the cost to replace or restore electronic data or programs damaged, destroyed, or stolen in a data breach, irrespective of if the data belongs to your firm or someone else. Losses must result from a covered peril, such as a hacker attack, a virus, or a denial of service attack. Policies for cyber liability insurance in Ontario may also cover the cost of hiring experts or consultants to help preserve or reconstruct data.
- Loss of Income and Additional Expenses
It covers income losses you suffer and additional expenses you incur to avoid or minimize the odds of cessation of your business after your computer system fails because of a covered peril. Some policies, including the Hartford and Travelers policies, cover dependent income losses. These are income losses for you to sustain when your network provider’s system has been breached.
- Cyber Extortion
Cyber extortion coverage applies when a hacker invades your organizational network and threatens to commit a nefarious act, such as damaging your data, implanting a computer virus, initiating a denial of service attack, or releasing confidential data unless you agree to pay a specified sum of money. Coverage for cyber extortion typically extends to any extortion payment you make and expenses you incur in responding to the demand.
- Notification Expenditure
Notification costs cover the cost of notifying parties (voluntarily or as required by law) affected by a data breach. It may also cover the cost of providing credit monitoring services and establishing a call center.
- Damage to Your Reputation
Certain policies for cyber liability insurance in Ontario come with the provision of covering costs you incur for marketing and public relations to protect the reputation of your company following a data breach. This coverage may also be known as crisis management insurance.
Every cyber liability policy contains unique terms that are explained in its definitions section. To understand the policy, you need to know what the terms mean.
Third-Party Liability Coverage
The liability coverage provided by a cyber-policy is usually claims-made. Coverage for cyber liability insurance in Ontario generally applies to damages or settlements that result from covered claims as well as your litigation expenses. Note that your defense costs may reduce the limit of insurance.
A cyber liability policy may include retention, i.e., an amount you must pay before the insurer will make a payment.
- Network Security and Privacy Liability
It covers claims against your firm for negligent acts, errors, or omissions that result in a denial of service attack, unauthorized access, implantation of a computer virus, or other security breaches of your computer system. It also covers claims alleging you have failed to safeguard sensitive data stored on your computer system where it may belong to your clients, employees, or other parties.
- Electronic Media Liability
Cyber liability insurance in Ontario for electronic media covers lawsuits against you for acts, such as libel, slander, defamation, copyright infringement, invasion of privacy, or domain name infringement. In general, these acts are covered only if they result from your publication of electronic data on the internet.
- Regulatory Proceedings
It covers fines or penalties imposed on your firm by regulatory agencies that oversee data breach legislation.
- Does my business policy cover cyber liability?
It may be true that your existing business insurance offers coverage for cyber liability and we can certainly review the same for you. We understand even you have some form of coverage that will not cover to the extent of any given insurance product for cyber liability.
- What if we outsource our information technology requirements to a trusted partner and store data in the cloud?
Investing in a well-qualified knowledge partner with state-of-the-art technology, firewalls, and encryption will certainly help mitigate the risks of potential breaches. Teaming up with the best-in-class cloud provider can provide some assurance that your data will remain protected.
However, it is no secret that a large number of cyber threats, internally as well as externally, stem from human error. Your risk can depend on the contractual agreement between you, your clients, as well as hardware and software vendors.
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