Sample Sidebar Module

This is a sample module published to the sidebar_top position, using the -sidebar module class suffix. There is also a sidebar_bottom position below the menu.

Sample Sidebar Module

This is a sample module published to the sidebar_bottom position, using the -sidebar module class suffix. There is also a sidebar_top position below the search.

There is no denying it – the supply chain relies heavily on an interconnectedness that only the internet and technology can deliver. Technology allows for more efficient freight movement, more precise pricing, increased security and better record keeping, to name a few. Technology brings plenty of benefit to the supply chain and without it the just in time inventory system the modern world is based on would not be possible.

With great reward, comes great risk. If all a company’s data lives online – what happens when there is a security breach? If your company stores client’s data, employee personal information and all your financial data on the cloud, how can you protect it? Unlike theft of physical assets, criminals do not need to be anywhere near you to access your information – calling the police on a hacker in another country may not get you too far.

Your company is likely more technology driven than you may think. Typical tech-based tools include email, file storage, ELDs, invoicing software, quote generating software, inventory management and your internal IT system such as servers, firewalls and the like. Your company’s technology is an asset, just like your warehouse, trucks and trailers. Just like your physical assets need protection, so your does data. This is why cyber insurance was developed and why it is an absolute necessity for your company.

Cyber risks typically fall into two categories – data breaches and cyber attacks.

Data breaches are exactly as they sound. Your company (a.k.a the ship) has been boarded by pirates and they are rummaging through a bunch of things that do not belong to them and taking what they want. Unauthorized access to an individual computer or network can lead to a data breach of millions of pieces of information.

The term cyber attack covers a wide array of activity that includes password attacks, denial of service, phishing and malware. A cyber attack could crash your whole system, hold it for ransom or any other number of scenarios that would seriously disrupt your business operations. Image that a virus got into your server, imagine all things that ever talked to that server suddenly were not available to you – what is your plan and how much money do you have set aside to get yourself up and running. Enter cyber insurance.

A common misconception about cyber insurance is that companies are too small or do not have anything worth taking – both ideas are wrong. Even a hack of a basic email system or ELD software could set you back thousands of dollars. The amount of information available from even the simplest of systems can require outside help. Getting your system back online, restoring or recovering any data, passwords, etc. is an extensive process that will likely require some outside help. For more complex systems there is the risk of legal or civil damages if sensitive information is lost or exposed. An entire industry was built around organization’s need to recover data lost to cyber breaches. Cyber recovery companies can assist your company when data is breached, or you are under attack. From stopping attacks in their tracks to getting back lost information.

A cyber insurance policy responds when you need it the most. An experienced broker can help companies find a product that best addresses their needs. Most products will cover the following areas:

Legal Notification Costs: Canada has laws around notifying appropriate parties when information has been put at risk. The Office of the Privacy Commissioner of Canada updated the Personal Information Protection and Electronic Documents Act that requires organizations to report breaches, notify individuals and keep record of all breaches.

Crisis Management Expense: A large breach can damage your company’s reputation and cost you customers. Policies may cover the cost associated with hiring a professional to communicate with clients and/or the public on your behalf.

Forensic Investigation Expenses: Complicated situations call for expertise. A forensic investigation service to work with you to identify the problem, understand the source and recover any compromised data.

Extortion and Reward Payment Coverage: In the case of your information being held hostage for money, this coverage could pay the cost of a professional negotiator and potential ransom payments extorting your company.

Business Interruption and Addition Expenses: Having your business come to a halt for even one day can have devastating financial consequences. This coverage would help cover those losses and any other costs associated with interruption of services.

Insurance is used to protect individuals and companies from worst-case scenarios. Cybercrime magazine recently predicted that cybercrime damage costs will hit $6 trillion annually by 2021. Global spending on cyber security expected to exceed $1 trillion in the time period of 2017 – 2021. This stratospheric growth displays the amount of time, money and energy spend on mitigating these risks and managing the consequences of being a victim of cyber crime.

In early January 2020, the province of Saskatchewan’s health care system was the victim of a cyber crime. The ransomware attack lasted a full week and crippled administrative services. No personal medical information was compromised. EHealth Saskatchewan had virus protection, it had IT people and is well aware of the risk associated with cyber crime and still fell victim. While workforce training, a strong IT staff or partner and knowledge of all associated risks are certainly essential tools in protecting yourself, it is not a fail-safe measure.

Working with a broker is your best bet in purchasing a cyber policy that best fits your needs. As will all insurable risks, there is no one size fits all product that will protect everyone from everything. Insurers such as CFC offer cyber products based on business size ranging from private enterprise to large corporation. CFC also offers a product called Cyber Excess, which is available to businesses across the world. This particular product is designed specifically for companies with up to 1 billion dollars in revenue – including transportation and logistics companies. It is designed to provide an excess 10 million dollars and will respond to the limit in the event multiple cyber events occurring within the policy period – typically one year.

These products exist for a reason – there are risks in the cyber based interconnected work that need to be both managed and protected against. In an ideal world, your systems and software are always secure and any risks are managed by cautious behavior. Unfortunately, just like that does not work for trucks on the road, it doesn’t work in the cyber world either. You would never run an uninsured fleet of trucks and cross your fingers that drivers were well trained enough to not be involved in a collision, so do not do it with your cyber space.