A company’s business activities are supported by a technological environment that may put it at risk of a data breach that would affect its daily operations. What is more, a company may be at risk and not even be aware of the potential financial implications of such a breach.
According to the Ponemon Institute’s 2017 Cost of Data Breach Study, Canadian companies who have been breached in 2017 incurred an average of about $250 per lost or stolen record. For a small to medium-sized business, this could easily result in nearly one million dollars in damage. These results differ greatly by industry type, the most costly being from the Technology, Financial and Services industries.
I have a bulletproof IT system, why do I need insurance?
Although nearly half of data breaches are the result of a malicious or criminal attack, the other half stems from glitches in existing systems (including IT and business process failures), and from employee negligence or carelessness. No matter how solid the existing IT system is, there are always gateways that hackers could exploit, and there is always the possibility of human error which a company cannot totally avert.
Cyber-attacks are increasing in frequency and complexity, and the costs involved in returning to normalcy are not negligible. If the measures taken to counter a cyber-attack are not adequate, the consequences may lead you to redefine the way you do business, and may even threaten the sustainability of your operations.
Optimum can cover data compromise up to $1,000,000. This product covers the assessment of the data breach, professional legal advice, the cost of notices to affected customers, and a few other services.
You can also get coverage for Defense and Liability which provides, amongst other things, for costs related to your defense should a prosecution be filed against you following a data breach.
You may be eligible for the CyberOne coverage offering protection against computer attacks and network security liability, with a limit of $100,000. Following a cyber-attack, this coverage will compensate you for fees related to data recovery, system recovery, operating losses, public relations, communication services, and expenses associated to rebuilding your database.
Furthermore, in case of a prosecution following a data breach, this coverage will cover the costs related to the defense and settlement for unintentional spreading of unwanted malware or a denial of service attack.
Ask your local broker about Optimum’s Data Compromise and CyberOne coverages!