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Cyber Risk Management

Jan 10, 2024

Cyber risk is not only a growing global threat but has also become a local threat in the past few years. Many business owners are becoming more aware and concerned about the potential danger that their businesses face as we have transitioned to an online society. The threat of cyber liability looms for not only large companies but small ones as well.

Cyber liability coverage is becoming more common and more affordable as well. The coverage provided through the CVMA Insurance Program by Western Financial Group protects your business by including the following:

1. Liability Coverages
   1. E-Media Liability
   2. Network Security and Privacy Breach Liability
2. Expense Coverages
   1. Privacy Breach Expense
   2. Privacy Regulator Defence and Penalties
3. First Party Coverages
   1. Business Interruption Loss
   2. Digital Asset Loss
   3. Cyber Extortion Threat

Some credible threats that can occur and should be protected against include:

1. Release, divulge, disseminate, destroy or use of digital assets acquired by unauthorized access or unauthorized use of the computer system.
2. Introduce malicious code into the computer system.
3. Transmission of malicious code in an effort to corrupt, damage or destroy the computer system.
4. Effort to corrupt, damage or destroy the computer system.
5. Falsely claim to represent the business in order to falsely obtain personal information of customers.
6. Restrict or hinder access to the computer system including the threat of criminal or malicious acts.
7. Encrypt, lock down, or otherwise render data unreadable and/or unusable.

Ensuring proper security involves having hardware, software, or firmware in place to mitigate or prevent unauthorized access to a computer system. It includes firewalls, filters, computer virus protection software, intrusion detection and the electronic use of passwords of authorized users. It also involves the requirement of having specific written policies and procedures intended to directly prevent theft of a password or access code by non-electronic means.

Coverage can be excluded by the following:

1. Security Failure

It is important to ensure that the most current security measures are in place. Not having the most current virus protection would exclude coverage.

2. Government Authority

Any seizure, confiscation, nationalization, or destruction of the computer system or digital assets by order of any government or public authority.

3. Wear & Tear

Any wear and tear or gradual deterioration of the computer system or digital assets.

Notification of loss

It is very important to provide immediate notice of any claim so that an investigation can occur to mitigate any potential loss. Claims can be reported by calling toll-free 1-800-665-8990 or e-mail to pcclaims@westernfg.ca.

CVMA members who join the CVMA Group Insurance Program can receive a minimum 10 per cent reduction off their current commercial insurance premium for an equivalent or superior coverage.  If you want more information on protection your business from cyber threats or want a second opinion on your current policy, check out our website at westernfinancialgroup.ca/cvma or call us at 1-800-665-8990.