Business Cyber Coverage Facts
Businesses and organizations of all sizes depend on electronic devices to use and store confidential data including personal and financial information about its clients, vendors and employees. Technology helps organizations in efficiency but increases its risk of exposure. It may be a matter of time before all organizations become a victim of a cyber-attack or data breach.
As of November 1, 2018 Canada’s federal Personal Information Protection and Electronic Documents Act (PIPEDA) requires organizations subject to the Act to:
- Report the breach to the Office of the Privacy Commissioner of Canada based on their guidelines
- Keep records of all breaches
- Notify the breach to affected individuals.
As required by law, organizations must follow the regulations in order to avoid added fines and penalties. Investigate what your duties are.
Cyber-attacks consist of attempts to corrupt computer systems and electronic data. Data and privacy breaches include the theft or unauthorized disclosure of personal information.
There are many steps that can be done to help limit your organization’s exposure to threats and loss. As a starting point, establish and maintain detailed procedures; ensure devices have high grade anti-virus, anti-malware and firewall software; change secure passwords regularly and backup data frequently.
Many of the expenses and legal liability of a data breach can be insured! Coverage is now available for some costs an organization may face including remediation and notification expenses, computer security experts and public relations. Coverage for legal liability to third parties resulting from a failure to prevent a data breach is also available that is excluded by traditional business liability insurance. Start taking steps necessary to protect your organization against virtual threats and to those your organization has legal obligations too.
Written by our brokers Loretta and Natalie