As of November 1st 2018, businesses must submit formal notification of cyber breaches under Canada's federal private sector privacy law. Learn the key cyber insurance terms in this reference guide.
A Go-To Resource of Cyber Insurance Technical Terms
Trying to determine if your business’ insurance coverage includes relevant cyber risks can be a confusing process. Here is a list of basic terms used in the cyber risk and insurance conversation that may be helpful to you.
What is Cyber Insurance?
Cyber Liability coverage protects your business from several types of risk including business interruption, identity theft, reputation recovery, notification expenses, system recovery and loss or corruption of data. Cyber Insurance is made of four main components: Errors and Omissions, Media Liability, Network Security and Privacy. It is designed to protect your company from the major expenses associated with resolving a data breach.
What is a Data or Security Breach?
An incident that bypasses security systems to result in unauthorized access or release of sensitive or confidential data.
What does Errors and Omissions (E&O) mean?
This protects your company from errors in the performance of your services. This can include technology or employees.
What is a Firewall?
A defensive technology designed to keep the bad guys out. Firewalls can be hardware or software-based.
What is First Party Cyber Coverage?
This is protection for the data you own. For example, the information that pertains to your customers, employee files and information or vendor and supplier information.
What is Media Liability?
This is advertising injury claims such as infringement of intellectual property, slander, copyright or trademark infringement and libel, on or offline. You may have seen this in the past in your general liability policy, classified under a “media” component.
What does Network Security mean?
An activity designed to protect the usability and integrity of your network and data. It includes both hardware and software technologies.
What is PIPEDA?
The personal Information Protection and Electronic Documents Act (PIPEDA) is a Canadian federal law that protects that personal information that is obtained during a commercial activity. The law outlines the rules, expectations and consequences associated with cyber security and a data breach.
What is a Privacy Breach?
An incident that results from failure to protect private, personally identifiable information.
What does Privacy mean?
The protection of information in your care, physically or electronically. It is your responsibility to protect or destroy (properly) your customer, employee and vendor information and only collect information legally and with explicit consent.
What is Third-Party Cyber Coverage?
Protection for liability associated with your customer’s data. For example, if a third-party company is affected by a cyber-breach in your organization, this helps rectify damages occurred, including financial loss, physical damage to servers or brand reputation harm.
Cyber Security is Important for Businesses of All Sizes
Whether you have 3 employees or 3,000, if you capture customer data, Cyber Security should be a concern. The changes to the privacy law announced today means it is your duty to ensure that the data you collect is protected.
Does Your Business Policy Include Cyber Insurance?
If you don't know the answer to this question it's a good idea to speak to your commercial insurance broker sooner than later. As your trusted insurance advisor, your broker will be able to help you understand the impact on your business of the changes to Canada's federal private sector privacy law.
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