Presented here is a brief discussion on Cyber Insurance , one type of business insurance, and does not constitute insurance advice. This is not intended to be a comprehensive description of coverage, and does not include details of the coverage nor the terms, conditions, qualifications, limitations and exclusions applicable. Policies should be reviewed in their entirety and related to your specific operations. Many insurers permit changes (Changes to insurance policies are usually called "endorsements" or "riders") in their limitations or exclusions to match your specific requirements. As insurance advice must be tailored to the specific circumstances of each situation, nothing provided herein should be used as a substitute for the advice of a competent insurance broker. IN NO EVENT WILL RHODES & WILLIAMS LIMITED BE LIABLE FOR ANY DAMAGES WHATSOEVER, INCLUDING SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, ARISING OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THE INFORMATION PRESENTED IN THIS DOCUMENT.
Simply put, cyber risk is the exposure to financial loss for an organization that arises out of the use of computer networks and the internet.
Technology and Media have transformed the way we communicate. As more and more organizations rely on technology to conduct business, it can significantly increase their vulnerability to cyber security threats. This can result in substantial monetary and reputational costs that can wreak havoc with it's bottom line.
According to most recent technology related journals and articles, when speaking of data security breaches, it's not as much a matter of if a breach will occur, but when.
Your system could be sabotaged by disgruntled employees, malicious insiders, or criminals from the outside. These individuals (internally or externally) might be motivated by theft for financial gain, identity theft, fraud, extortion, revenge, pride or believe it or not, just for fun - in order to identify weak points in the system.
There are two areas of loss an organization needs to consider when purchasing cyber insurance.
First Party Losses (the organization's direct loss) and
Third Party Losses (the organization's liability to others)
First Party Losses can occur as a result of loss, damage or destruction of data, network damage, system failure, theft of data, increased cost or working, lost business revenue, damage to your organization's reputation and cyber extortion.
Third Party Loss can arise from breach of confidentiality, invasion of privacy, defamation, misleading advertising, infringement of copyright and intellectual property, disclosure of private facts, misappropriation of name and brand and transmission of computer viruses.
Traditional insurance policies contain significant gaps that can range from, but are not necessarily limited to, theft of data, destruction by hackers, cyber extortion, liability for privacy breach from the unauthorized disclosure of data through human error, system malfunction or hackers to name a few.
In order to evaluate the need for Cyber insurance, you might want to start off asking yourself the following questions.
Chubb Insurance Company offers the following list to help organizations identify the risks involved and some of the costs and repercussions that could result from a cyber breach.
The costs of data security breaches can be significant:
*To date, the Alberta PIPA is the only private-sector privacy legislation that imposes a statutory obligation on private-sector organization to disclose privacy-related data breaches. However, proposed amendments to PIPEDA (Personal Information Protection and Electronic Documents Act), if enacted, would add a mandatory notification requirement to that statute. Federal and provincial privacy commissioners have also published guidelines that suggest disclosure and notification should be made in certain circumstances .
Rhodes & Williams Insurance Brokers is one of the largest independent insurance brokerage firms in Eastern Ontario. With offices in both Ottawa and Toronto, our insurance brokers have provided superior customer service and the right insurance coverage solutions since 1935. We specialize in custom-designed business insurance for a wide variety of industries including High-Tech Insurance (TECHCOVER®), Construction, Retirement and Senior-Living, Not-for-Profit, Packaged Insurance Policy Solutions, and Specialty Solutions.
Bob's tenure in the general insurance field spans more than thirty years, and includes experience as an underwriter, commercial account inspector and insurance broker. As an insurance broker, he specializes in insurance solutions primarily for manufacturing, technology, construction and not-for-profit organizations.
Bob is a Registered Insurance Broker in Ontario and is licensed in most Canadian provinces and territories. He is a Chartered Insurance Professional (CIP) and Canadian Risk Manager (CRM). Past credits include instructing Insurance Institute students, RIBO accredited continuing education course provider, and guest speaker at insurance or risk management functions.
Donna started her career in the insurance business in 1984 after completing her Bachelor of Arts at Queen's University. She has always worked in the commercial sector garnering experience over the years that enables her to assist clients with more intricate and complex accounts.
Donna is a registered Insurance Broker of Ontario and continues to expand her knowledge by attending seminars and classes to ensure her knowledge is in keeping with the ever changing insurance world.
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