Canadian small and mid-sized businesses are vulnerable to cyber attacks

21 percent of small businesses and 65 percent of mid-sized businesses have suffered a cyber attack in the past. Over half believe that there’s a chance their business is currently vulnerable to a cyber attack or data breach, especially those whose business is larger than a sole proprietorship. Those whose business also sells products or services online are twice as likely to feel that their business is vulnerable than those who sell in-store only. *

If it happened to them, it can happen to anyone.

Virtually all small to mid-sized businesses are at risk because they have computers and portable devices, store electronic data, retain people’s private information and are dependent on the Internet. And cyber risk isn’t limited to electronic attacks. An employee could lose a laptop or USB drive or inadvertently send an email with private data to the wrong address. And plenty of breaches occur when physical files of sensitive information are discarded or when an old computer is tossed.

Cost of cyber risk

The cost of cyber risk events is significant. Of the small to mid-sized businesses that were attacked, 58 percent said it cost them less than $100,000, and 41 percent stated it was at least $100,000.*recovery and reconstruction. Plus, typically once they’re aware of a cyber event, businesses shut down their systems, leaving them unable to operate, interrupting their income. When a cyber event occurs, businesses have to contend with multiple issues. Confusion and chaos reign as the company seeks to figure out what happened and how to respond. An incident needs to be investigated by a forensic IT specialist; legal counsel is often required; and notifications to clients need to be sent swiftly. Victims of cyberattacks will attest that the most expensive and time-consuming part of the ordeal is often data recovery and reconstruction.

HSB Total Cyber coverage highlights

HSB Total Cyber offers a bundle of eight coverages to provide multiple layers of insurance defense against complex, ever-evolving cyber risks.

• Data compromise response expenses - Pays insureds for forensic IT, breach notification, fraud alert and case management services, legal counsel, PR services, regulatory and PCI fines and penalties.

• Identity recovery - Identity theft services for business owners; case management and expense reimbursement for out-of-pocket costs, legal expenses, lost wages, and child or elder care.

• Computer attack - Pays data restoration, data re-creation and system restoration costs due to computer attack that damages data and software; includes business interruption and PR services.

• Cyber extortion coverage - Covers insureds’ negotiator or investigator costs and payments for eliminating ransomware or extortion threat.

• Data compromise liability - Third-party coverage for legal actions by affected individuals or judgments brought by federal or regulatory entities.

• Network security liability - Covers insureds’ settlement and defense costs for suits alleging an insured’s computer security negligence.

• Electronic media liability - Covers insureds’ settlement and defense costs for legal action alleging copyright or trademark infringement, defamation of a person or organization, or violation of a person’s right to privacy.

• Misdirected payment fraud - Pays for direct financial loss resulting from criminal deception using email, facsimile or telephone communications to induce an insured, or a financial institution with which an insured has an account, to send or divert money, securities, or tangible property.

Limits and Deductibles

HSB Total Cyber is subject to an aggregate limit, options are $25,000, $50,000 and $100,000. Sublimits for certain coverages may apply. A $1,000 deductible applies to claims.

Cost

• Premium of $225 for an aggregate limit of $25,000, plus applicable tax.

• Premium of $240 for an aggregate limit of $50,000, plus applicable tax.

• Premium of $300 for an aggregate limit of $100,000, plus applicable tax.

HSB Total Cyber response

HSB cyber adjusters are specialists skilled at assisting you in your recovery. Our cyber claim specialists act as managers, coaching you and coordinating responses from multiple vendors to help you lessen the impact and speed up the restoration of operations. Almost like a ‘cyber angel’ for you, they provide guidance and marshal expert resources for IT forensics, legal counsel, notification services, systems restoration, public relations, and other services that you need to recover.

HSB Canada, part of Munich Re, is a technology-driven company built on a foundation of specialty insurance, engineering and technology, all working to drive innovation in a modern world, to keep you ahead of risk. hsb.ca

ASSURART Inc. is a Canadian insurance brokerage and financial services firm. Over the years, we have developed the art of insuring businesses and professionals in the following sectors: information technology, life sciences, investment capital, environment, sharing economy, art, culture, and entertainment.

*IBC Small Business Cyber Security Survey, 2021.

This is a summary of coverages. For all coverages, terms, conditions and exclusions