Risk & Business Magazine Jones DesLauriers Insurance Magazine F2017/W2018 | Page 25

CYBER-ATTACKS
BY: IAN MORRIS
PARTNER, ACCOUNT EXECUTIVE,
JONES DESLAURIERS INSURANCE
Cyber-Attacks
Are You At Risk?
O
ctober is cyber awareness
month, and for Canadian
businesses, it could not be
more timely. Canada has
been spared from some of
the more spectacular cyber-attacks such
as the WannaCry ransomware attack, but
we should not confuse good luck with
good planning. Canada is increasingly
becoming a target; in fact, the Canadian
government’s Communication and
Security Establishment (CSE) has even
raised concerns over the vulnerability of
our election process to foreign entities.
Cyber-attacks on Canadian businesses
have grown dramatically over just the
past two years, with over 72 percent of
companies experiencing some type of
cyber-attack according to one recent
study. In the same study, 35 percent of
companies experienced a ransomware
attack. Canada has become a target as
most Canadian businesses do not have
effective technologies in place to keep
pace with the increasing cyber threat.
What is the financial impact of cyber
crime? The cost of the average cyber-
attack for enterprise business in Canada
in 2017 is CAD 1.3 million; for small- and
medium-sized businesses, the figure is
CAD 117,000. In response to cyber threats,
companies are increasing spending on
IT security: up 18 percent in 2017 for
enterprise companies and 14 percent
for small and medium-sized enterprises
(SMEs).
The epidemic of cyber-attacks is spreading
exponentially to the point where every
Canadian business will ultimately be
impacted. The most effective way to deal
with a cyber-attack is to put the same level
of effort into protecting your information
as you would your other physical assets.
The cornerstone of your company’s
cyber loss prevention plan should be a
comprehensive cyber insurance program.
In response to the explosion in cyber
crime, insurers are continually developing
new products to meet the needs of their
clients. Your exposure to cyber crime can
depend upon the industry you are in. For
example, in the manufacturing space,
cyber criminals focus on the theft of
intellectual property. For companies with
large customer databases, the theft of
personal information is a target. Recently,
ransomware attacks have become more
and more frequent, hitting even the
smallest of businesses. A good cyber
insurance policy provides dedicated limits
of insurance for a variety of cyber-related
crime, including cyber liability, data loss,
public relations and notification costs,
fines and penalties, business interruption,
and extortion.
Like the threats they insure, cyber
coverage is evolving quickly, and
insurance policies that appear similar
differ widely in scope of coverage and
policy exclusions. Speaking to a qualified
broker who can work with your IT
professional to determine the greatest
areas of exposure and vulnerability is the
first step in establishing a comprehensive
cyber insurance program. Take the time
to asses your companies needs annually,
and implement a tailored cyber program
that will meet the needs of your company
and respond to the rapidly changing
landscape of cyber crime. +
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