Cyber criminals love small businesses
Learn how to help protect your small business with the Cyber Savvy insurance guide
Brought to you by Insurance Bureau of Canada, Canada’s trusted source for property and casualty (P&C) insurance knowledge, resources and advocacy.
Cyber crime is a lucrative operation, and some artificial intelligence tools are being misused to make it even more efficient. All it takes is one click. What might look like an attached invoice or a security alert could launch your business into a full-blown crisis with financial loss, lawsuits and a damaged reputation.
That’s why it is more important than ever for businesses and organizations to take proactive measures to protect themselves. This means having a robust defence strategy, including building a strong cyber security plan and helping protect your company with the right cyber insurance policy.
Did you know?
Canada ranks second in the world for countries most affected by ransomware attacks, with 216 victims in the first half of 2025.
(Source: Toronto Star, August 5, 2025.)
The average total cost of a data breach to a Canadian company is almost $7 million.
(Source: IBM, Cost of a Data Breach Report, 2025. Converted from USD on September 16, 2025.)
Fast Facts: Cyber Insurance Explained
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Cyber insurance is a specialty insurance product intended to help protect businesses from loss resulting from digital risks such as data confidentiality breaches, technology disruptions and cyber extortion.
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Cyber insurance can cover loss resulting from a range of cyber events, including:
- Data confidentiality breaches: The loss of and/or unauthorized access to or disclosure of confidential or personal information.
- Technology disruptions: A technology failure or denial-of-service attack.
- Cyber extortion: A demand for payment under threat of causing harm to your data; for example, disabling your operations or compromising your confidential data.
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Cyber insurance can help businesses cover a number of costs resulting from these cyber events, including:
- Network systems and electronic data restoration expenses: Restoring or recovering damaged or corrupted data caused by a breach, denial-of-service attack, or ransomware.
- Security breach remediation and notification expenses: Notifying affected parties and mitigating potential harm from a privacy breach, such as providing credit monitoring to affected individuals.
- Forensic investigations expenses: Hiring a firm to investigate the root cause and scope of the data breach.
- Legal costs and civil damages: Paying for legal representation up to the policy’s specified limit, and possible damages related to a privacy or network security breach.
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No, most property or liability policies do not cover cyber risks, data confidentiality breaches or have offer very limited coverage. Cyber insurance products are provided in one of three ways:
- Stand-alone cyber insurance policies (policies specifically for cyber risks) are the most common cyber policies in Canada, the United States and Europe.
- A traditional property and liability insurance policy that may include limited coverage for some cyber events. These policies typically have low limits that would not cover the full cost of a breach or cyber attack.
- Endorsements (also known as riders) can add, remove or exclude certain cyber coverages, altering a cyber or traditional insurance policy to meet specific needs.
Thinking about getting cyber insurance?
Explore IBC’s free resources to get started
Cyber Insurance Assessment
Take this 10-question Cyber Insurance Assessment to learn more about the cyber security protocols that most cyber insurers want you to have and for ways to reduce your business’ risk. This assessment also offers some questions that cyber insurers may ask you.
LET’S BEGIN
Research & News
Insurance Bureau of Canada recently conducted a poll on actions, knowledge and sentiment about cyber risk and cyber security among business owners and decision makers at small and medium-sized businesses in Canada.
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About
The Cyber Savvy Canada website was created by the Insurance Bureau of Canada (IBC) to help increase cyber awareness among Canadian employees and businesses and educate on the simple steps we can all take to reduce our cyber risk at work.
Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up the vast majority of Canada’s highly competitive property and casualty (P&C) insurance market.
Are you a business owner? IBC is here to help.
Business owners with questions about how to protect their business from cyber risks, including cyber insurance, can visit ibc.ca or call IBC’s Business Helpline at 1-844-2ask-IBC.
