It is quite common to purchase a package policy that covers a variety of scenarios. Often cybersecurity is added as an endorsement onto another insurance policy. However, it is important to understand exactly what you are covered for and whether you need to add on extra cybersecurity insurance coverages. You absolutely do not want to file a claim after a critical breach, only to find out you are not covered for that particular exposure.

Listed below are a seven cybersecurity insurance coverages you should consider as you seek out an insurance policy. Speak with us if you want to learn more about these or any other features of a cybersecurity insurance policy.

1. Acts and/or omissions of third parties
Almost all companies use multiple external vendors to handle specific tasks (e.g., credit card process, infrastructure hosting). This coverage protects you in the event that a claim arises because of the actions of one of your vendors.

2. Contingent business interruption
When you use third-party vendors, you rely on their services to run your business. If their systems are breached and go down, your business may suffer. This coverage protects you in such cases.

3. Data Restoration Costs
First-party cyber policies typically exclude the cost to restore lost or compromised data, which can be significant. If you manage large amounts of sensitive data, consider adding this coverage.

4. Failure to protect data
Most policies cover breaches that happen as a result of unauthorized system access, but may not cover theft or loss. This coverage would protect you in case a lost laptop or USB key results in the release of sensitive data.

5. Regulatory fines and penalties
A significant breach could result in regulatory investigations, fines or penalties. Make sure your policy protects you in such cases.

6. Business interruption coverage
This is an important coverage to help cover the loss of profits or revenue the business suffers as a result of the break. This might be due to systems being down or customers leaving due to reputational damage.

7. Bodily injury and property damage
 Cybersecurity insurance policies typically exclude both bodily injury and property damage. This could be an issue if a lawsuit is filed due to emotional distress. For example, the breach of private medical information could result in embarrassment and distress for many individuals.

Talk to us about which cybersecurity insurance coverages are right for your business.

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About Zensurance

Zensurance is Canada’s leading online commercial insurance broker. We offer a full range of insurance products to small businesses, with a particular focus on digitizing businesses and technology startups. We understand what it is to work with new technology, and know the most common risks of which you should be aware. Based on that (and a lot of analytics), we recommend the ideal insurance coverage for your business.

If you have specific questions about your business insurance, please visit us at or email us at and we will find the answers for you.