Cyber liability insurance in Canada is becoming a must-have for businesses, and for good reason. With ransomware attacks rising and data breaches becoming more expensive, companies recognize the importance of protecting themselves from cyber threats.
More Businesses Are Securing Cyber Insurance
According to a recent survey by the Canadian Internet Registration Authority (CIRA), 82% of Canadian businesses now have cyber insurance—up from just 59% in 2021. Of those insured, 42% have a cyber-specific policy, while 40% include cyber coverage as part of a broader business insurance policy.
However, businesses also report that cyber insurance policies are evolving. Insurers are requiring proof of stronger security measures, increasing premiums, and adjusting eligibility criteria. 39% of businesses said their insurer asked for new evidence of cybersecurity protocols, 38% saw premium hikes, and 37% noted stricter eligibility requirements. Additionally, 30% of policyholders experienced reduced reimbursement amounts for ransomware attacks.
The Rising Cost of Cyberattacks
Cyber incidents are increasing in frequency and cost. IBM’s Cost of a Data Breach Report 2024 states that the average data breach now costs businesses US$4.88 million. The financial burden stems from lost business, post-breach recovery efforts, and ransom payments.
Ransomware attacks have surged, with 28% of Canadian businesses reporting a successful attack in 2024, up from 17% in 2021. Of those targeted, 79% admitted to paying a ransom, with the most commonly paid amount falling between $50,000 and $100,000. Despite the financial and reputational risks, many businesses hesitate to report cyber incidents to law enforcement. Yet, IBM estimates that organizations could save up to US$1 million by involving law enforcement early in a ransomware event, as it helps shorten response and recovery times.
The Hidden Costs of a Cyber Breach
Beyond the direct financial impact, cyberattacks can affect a company’s reputation and customer trust. The CIRA survey found that 28% of businesses reported reputational damage after a cyber breach, up from just 6% in 2018. Similarly, 26% noted a loss of customers due to a cyber incident.
Despite regulations requiring businesses to report significant breaches to privacy authorities and affected customers, many organizations remain reluctant to disclose cyberattacks publicly. This lack of transparency can make it harder for companies to learn from industry-wide incidents and strengthen their cybersecurity posture.
How Wedgwood Insurance Can Help
With cyber threats evolving rapidly, having the right cyber liability insurance policy is essential to protect your business. We understand the risks at Wedgwood Insurance and can help you secure the right coverage tailored to your needs. Whether you’re looking for a standalone cyber liability insurance in Canada or coverage as part of a broader business insurance plan, our team is here to guide you through the process and ensure you’re fully protected.
Don’t wait until it’s too late. Reach out today—our team is ready to help.
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Wedgwood Insurance has offices in St. John’s & Corner Brook and is Newfoundland & Labrador’s largest independent insurance broker. We provide straightforward home, auto & business insurance advice.
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