Cyber Security

The simple fact is that most commercial insurance policies either exclude cyber events or offer a built in cyber coverage that simply offer you a help line if you have had a cyber event.

If you keep any customers personal information, employees information, transactions, or hold any important data on your computers that a hacker could use; you may want to consider purchasing Cyber Insurance to protect your company.

Insurance Security

Everyone assumes that cyber events only happens to the big companies. This is simply no longer true. Small and medium sized businesses are easier targets as they do not have the same money and workforce to implement a hardened security protocol.

The most frequent cause of loss/claim in the past few years has been from stolen or lost personal devices (laptops, phones, etc). This type of loss happens to every business, and if your companies devices are not encrypted and locked, you may find yourself in a claim situation. The second most frequent cause of loss was due to hackers.

Lost USB Drive

In 2011 the Ontario Superior Court of Justice certified a class action in the case of a nurse who lost a digital memory USB key. The USB key contained the unencrypted personal and confidential information of 83,524 individuals who received H1N1 vacines.

In this particular case the court approved a settlement whereby class members could make a claim and even pursue the claim before a claims adjuster. The settlement also provided for the payment of costs to class counsel in the additional amount of $500,000, plus 25% of actual claims paid by the defendant in the future.

The court made it very clear that the case could have been worse when they stated that the case “would look far different if information from the lost USB key had been abused by a wrongdoer”.

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