Canada Dashboard Digest

Opinion: Insurance Policies Rarely Cover Breaches

DATA LOSS

August 20, 2011

In an article for The Lawyers Weekly, Gordon Hilliker discusses the importance of liability insurance. "Any organization with a website, online storage facilities or even just an e-mail account is vulnerable to a claim that it has caused damage to another's computer software or data," he writes. Most organizations purchase a commercial general liability policy. However, such a policy generally does not cover data breaches. A Sony insurer, for example, recently filed a suit claiming it's not responsible for legal costs following the company's data breach. The Insurance Bureau of Canada has revised its policy to exclude data breach coverage. Hilliker advises organizations to seek policies that specifically cover cyber risks.
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