Privacy Breach Insurance Update

With The First Canadian Privacy Breach Class Action Now Certified… Privacy Breach Insurance Is Needed Now More Then Ever!

Q: What Is Privacy Breach Insurance?

A:  While Commercial General Liability (CGL), commercial property and commercial crime/fidelity policies can cover damage to your tangible property, none of these will provide coverage for loss of data, which is considered intangible. Intangible property values often far outweigh tangible property, making privacy breach insurance and cyber liability coverage a no-brainer if you maintain a strong online presence or handle a customer’s private or confidential information.

A typical privacy breach insurance or cyber liability policy can help protect you from costs associated with a data breach, copyright or trademark infringement, data loss due to natural disasters or hacking and business interruption.

New technological exposures continue to emerge. As your business grows, make sure your privacy breach insurance and cyber liability coverage grows with it.

Q. Is Privacy Breach Insurance Needed In Canada?

A. Yes. Although Canadian provincial or federal legislation does not make notification after a breach of personal information mandatory yet the practice is still encouraged and can be an effective way to manage damage to your organizations reputation.  In addition, customers are becoming increasingly aware and concerned about the protection and privacy of their data and “Ontario’s first class action arising from the new tort of “intrusion upon seclusion” was certified last week.  In Evans v Bank of Nova Scotia, the plaintiffs sought to certify a class action against the bank and one of its employees, Richard Wilson, who provided private and confidential information about the bank’s customers to third parties in an identity theft scam foiled by Calgary Police. ” See The Full Article Here.

The defence costs alone in defending a class action are going to be significant let alone any settlements or judgments.

What Does Privacy Breach Insurance Cover?

• Privacy breach insurance provides access to a secure breach preparedness website, featuring tips and guidelines to help businesses minimize the risks and impact of a breach.
• Privacy breach insurance delivers peace of mind that breach related costs are covered including:

Public relations Good faith advertising, Breach consulting services Defence costs and settlement or judgements from related lawsuits

• Privacy breach insurance pays for professional assistance to help businesses confidently handle a breach crisis. Organizations can count on assistance from a team of breach professionals, including help with notifications and access to personalized fraud expert services for any victims of identity theft or fraud.

ALIGNED Insurance Advocates are available to help you analyze your needs and make the right privacy breach insurance and cyber coverage decisions to protect your organization from unnecessary risk. Speak to an ALIGNED Insurance Advocate or connect with us at www.alignedinsuranceinc.com to learn more.