Financial firms face significant risk from cyberattacks

Waterloo, Ont.-based Economical Insurance announced that it’s introducing Expert Cyber coverage, which is available to commercial insurance policies, to respond to the increasing level of global cyber threats and to provide coverage to Canadian businesses and their customers in the case of a data breach.

“From internal breaches caused deliberately or inadvertently by staff, to computer systems frozen by ransom-demanding hackers, a company’s entire operation can be critically compromised with a few clicks of a mouse,” says Fabian Richenberger, executive vice president of commercial insurance at Economical, in a statement.

“With Expert Cyber, everything is taken care of,” he adds. “From meeting regulatory requirements and covering fees, to notifying clients, managing business interruption and restoring lost data.”

Economical reports that Expert Cyber will include response services and coverage for first- and third-party losses caused by a data breach. Coverage entails:

> First-party losses to the business owner resulting from network business interruption, cyber extortion and data protection.
> Third-party damages and expenses stemming from a violation of privacy law, regulatory defense and penalties or payment card fines.
> The cost of professional services, such as forensic investigation, legal support, public relations and crisis management.
> Breach support and specialized claim services from a specialized team of breach response professionals.

“We give customers peace of mind knowing that in the event of a breach we deliver professional services that will mitigate their loss and save their reputation,” Richenberger says.

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