October 18, 2017 by Canadian Underwriter
The Co-operators General Insurance Company announced on Wednesday a new product that provides insurance coverage and risk management solutions for Canadian businesses to help protect them from the “rapidly growing threat of privacy breach.”
The coverage complements commercial insurance policies and is designed not only to cover costs associated with a privacy breach and the resulting liability, but also to provide expert loss prevention advice and support in effectively responding and recovering from such an incident, Guelph, Ont.-based The Co-operators said in a press release.
The product provides two distinct coverage offerings to meet the changing needs of small and medium companies, The Co-operators said. Privacy Breach Expense covers costs of responding to and mitigating the impact of a privacy breach; Privacy Breach Liability covers the amounts a company is deemed legally liable for, as a result of a breach. The coverage is available from The Co-operators advisors across the country.
The product also provides clients with access to CyberScout, a provider of preventative education, proactive protection services and incident remediation support, to help reduce companies’ risk and effectively respond in the event of a privacy breach.
“Cyber criminals are continually devising new ways to access personal data online, and virtually every business in Canada is at risk,” Rob Wesseling, president and CEO of The Co-operators said in the release. “As large companies improve their data security, cyber criminals look for easier targets, putting small and medium businesses at greater risk. Having good data security measures can reduce the risk of privacy breach, but no company can eliminate it altogether. We are committed to helping to protect Canadian businesses, and our privacy breach coverage provides the resources and coverage to help them before, during and after a breach.”
A privacy breach is an incident resulting in improper or unauthorized access, collection, use or disclosure of sensitive or protected personal information, The Co-operators explained in the release. Some of the most common privacy breaches occur when personal information is stolen, lost or mistakenly shared. Such incidents can do serious harm to a company, including reputational damage, lost revenue, significant legal expenses and fines. A recent study by Juniper Research predicted that criminal data breaches will cost businesses a total of $8 trillion globally over the next five years.
The Co-operators Group Limited is a Canadian co-operative with more than $48 billion in assets under administration. Through its group of companies, it offers home, auto, life, group, travel, commercial and farm insurance, as well as investment products.