Average cost of data breach: $6.2 million - Defending your business with insurance

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Email is an essential business communications tool, but its use can cause complications for your company. Employees often misuse company email accounts for personal matters, potentially landing them and their employers in hot water.

As well, employers can be held responsible for whatever actions employees take while using the internet at work. It's important to establish an email usage policy and educate employees on the proper use of email and the internet.

Defend against losses or damages caused by viruses with specialty computer virus transmission coverage. Unauthorized access and use coverage insurers against losses when third-party information is stolen, which is important for any business storing confidential or personal information.

Your company may also be entitled to rehabilitation expenses in order to re-establish your reputation and market share after a loss. Each carrier's internet-related insurance products need to be closely examined to determine what they will and will not cover and who will pay the defence expenses.

Another detail we oversee is whether the policy itself is a claims-made or an occurrence policy. Claims-made policies will only cover losses that are made and reported during that policy period. If this is the case, and extended reporting period (ERP) may need to be negotiated.

E-commerce presents today's risk managers with new challenges - the information in this post only scratches the surface. To ensure the success of your e-commerce initiatives, Scrivens Insurance and Investment Solutions recommends a comprehensive risk assessment be conducted to identify potential gaps and appropriate levels of coverage.

Who needs a plan?

Traditional comprehensive commercial general liability (CGL) policies cover many of a business's typical risks; claims of bodily injury, personal injury, advertising injury and property damage as a result of your products, premises, operations are commonly included. However, the prevalent use of technology by almost all businesses now presents a new set of common business risks that your CGL might not protect against.

Some carriers do cover some risks related to e-liability in their CGL policies, but many are avoiding liability by including specific exclusions and requiring endorsements for this coverage.

However, insurance carriers are now offering a selection of products specific to the risks technology presents. Recognizing the ins and outs of each product is key in proper policy selection. That's where Scrivens can assist you, providing the expertise to make sure you have the appropriate coverage and risk management solutions to meet your needs.

Cyber liability coverage may include an e-comprehensive policy. This policy may cover losses caused by fraudulent modification, accidental alteration or destruction to electronically stored information. In addition, losses caused by malicious copying of trade secrets, extortion, and the introduction of a virus could be covered.

Media liability addresses the losses associated with libel, slander and invasion of privacy and infringement of copyrights.

The first line of defence against cyber threats is a well-trained workforce. Use an employee cyber training manual to educate your employees about common threats and the best practices to defend against them. This document focuses on a general overview and best practices and is meant to be used with three additional “Employee Cyber Training Manual” documents. To receive your FREE Cyber Training: Overview & Best Practices document, email nlast@scrivens.ca.

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