Cyber Insurance: What It Covers and Why You Need It

Cyber insurance is rapidly becoming essential for Canadian businesses of all sizes. As cyberattacks grow more sophisticated, even well-protected businesses can be targeted.

What Cyber Insurance Covers

A typical cyber insurance policy covers breach response costs (forensics, notification, credit monitoring for affected individuals), legal fees and regulatory fines, business interruption losses during an attack, ransomware negotiation and payment (if advised), and public relations costs to manage reputation damage.

What It Costs

For a Canadian small business, annual premiums typically range from $1,000 to $5,000 depending on your industry, revenue, number of records, and security posture. Companies with strong security controls (MFA, backups, endpoint protection) qualify for lower premiums.

Why MSPs Recommend It

No security is 100% effective. Managed service providers implement strong defences but understand that risk can only be reduced, not eliminated. Cyber insurance transfers the residual risk. Many MSPs now require clients to carry cyber insurance as part of their service agreement.

How to Get Covered

Work with an insurance broker who specializes in commercial cyber policies. They will assess your risk profile and find appropriate coverage. Your IT provider can help you complete the technical questionnaire that insurers require.

Need a broker? Check our sister directory at DoINeedAnInsuranceBroker.com.