Data Compromise Insurance for Businesses
Today’s businesses rely on data, including customer information, payment details, employee records, and digital communications. When that data is accessed, stolen, or exposed, the financial and reputational impact can be significant.
Cooke Insurance works with your business to help you evaluate data related risks, understand Data Compromise Insurance options, and make informed decisions about appropriate coverage levels.
What Is Data Compromise Insurance?
Why Saskatchewan Businesses Need Data Compromise Insurance
Businesses are increasingly reliant on digital tools, cloud systems, and online customer interactions.
Here’s why this coverage matters:
1. Cybercrime Is Increasing
Phishing, ransomware, and social engineering attacks continue to rise, and small businesses are being targeted more frequently because they tend to have weaker security measures.
2. Privacy Regulations Require Detailed Response Measures
PIPEDA mandates that businesses notify affected customers and take reasonable steps to mitigate harm. This can be costly and time-consuming without the right support.
3. A Data Breach Can Damage Customer Trust
Even a minor exposure like an email sent to the wrong person or a lost laptop can lead to major reputational issues. Data Compromise Insurance helps Saskatchewan businesses recover professionally and transparently.
4. Local Businesses Are Not Exempt
Whether you’re a retailer, contractor, medical provider, real estate brokerage, or any other service based business, you handle valuable information. Breaches can happen.
What’s Typically Included In Data Compromise Insurance?
Coverage varies by policy, but most policies include the following core protections:
- Identity Recovery Services: Support for affected customers or employees, including credit monitoring and identity theft remediation.
- Breach Notification Costs: Covers the legal requirement to notify impacted individuals, plus the cost of mailing, call center setup, and handling inquiries.
- Public Relations & Crisis Management: Assists your business in communicating transparently and protecting your reputation after an incident.
- Professional Advice & Legal Guidance: Access to legal resources to ensure compliance with PIPEDA and other federal/provincial regulations.
- Data Restoration Assistance: Coverage for restoring, recreating, or recovering lost or corrupted electronic data.
Data Compromise vs Cyber Liability
These two coverages are often confused, but they serve different purposes:
Data Compromise Insurance
- Focuses on first-party costs
- Helps your business respond to and recover from a breach
- Covers notification, credit flagging, case management services, and PR management
Cyber Liability Insurance
- Covers third-party claims, lawsuits, and regulatory penalties
- Broader protection against ransomware, business interruption, and cyber extortion
Most Saskatchewan businesses benefit from pairing both types of coverage to create a complete cyber-protection package. Cooke Insurance can help you determine the policies you need.
Contact us or stop by the office to get started on your commercial insurance policy.
- 1-411 Confederation Dr
- Saskatoon, SK, S7L 5C3
Frequently Asked Questions About Data Compromise Insurance
Is Data Compromise Insurance the same as Cyber Insurance?
No. Cyber liability provides broader coverage with an emphasis on recovery and litigation, while data compromise focuses on first party breach response.
What types of data are covered?
Most policies cover customer information, employee data, payment details, medical information, financial records, and any personally identifiable information.
Does this coverage help with lost revenue due to downtime?
Not usually. Business interruption coverage is generally included in broader cyber liability policies, not basic data compromise coverage.
How do I know what level of coverage I need?
Cooke Insurance can assist in assessing your exposure to help build a policy tailored to your business.