Recent cybersecurity concerns and website shutdowns are a timely reminder for businesses to review their risks, understand their insurance protection and make sure they’re prepared for unexpected disruptions.

Cybersecurity is making headlines across Canada and around the world following the disclosure of critical vulnerabilities in widely used website software.

Here in Newfoundland and Labrador, several provincial government websites and online services were temporarily taken offline as a precaution. Memorial University and other organizations also took protective measures.

These shutdowns do not necessarily mean that a cyberattack or data breach has occurred. In many cases, taking systems offline is a precautionary step while security teams investigate potential risks and apply necessary updates.

However, the situation highlights something important for businesses of all sizes.

What would happen if the technology your business relies on suddenly became unavailable?

For businesses in Newfoundland and Labrador, Nova Scotia and across Atlantic Canada, it’s a good time to consider their cybersecurity risks, review their business continuity plans and understand the insurance coverage they have in place.

Why should businesses be concerned about cybersecurity risks?

Most businesses depend on technology to manage daily operations, communicate with customers, process payments, store information and deliver services.

A technology disruption can affect much more than a company’s website.

Imagine being unable to access customer records, process transactions, communicate with employees or use the software needed to run your business.

What would happen if the disruption lasted several days?

How would your business continue serving customers? What would the financial impact be?

And what if the problem involved a third-party technology provider that your business depends on?

These are important questions, even for businesses that have never experienced a cybersecurity incident.

What cyber risks could affect your business?

Cybersecurity incidents can create a range of operational and financial challenges. Some of the most common exposures include:

1. Business interruption and lost revenue

A cyber incident may prevent a business from accessing the systems it needs to operate. Depending on the circumstances, this could result in lost sales, interrupted services or additional expenses to keep the business running.

2. Data breaches and compromised information

Businesses often store sensitive customer, employee and financial information. If that information is compromised, they may face investigation costs, legal obligations, customer notification expenses and reputational concerns.

3. Ransomware and cyber extortion

Ransomware can prevent organizations from accessing important files or systems. Cybercriminals may demand payment or threaten to release stolen information.

Responding to these incidents can require specialized technical, legal and recovery assistance.

4. Problems involving third-party technology providers

Many businesses rely on cloud-based software, payment processors, online platforms and external IT providers.

An incident involving one of these providers could potentially interrupt your operations, even if your own systems have not been directly compromised.

5. Investigation, recovery and response expenses

Cyber incidents can involve significant costs beyond the initial disruption, including technical investigations, restoring information, managing communications and getting operations running again.

Does regular business insurance cover cyberattacks?

Not necessarily.

Many business owners assume their existing commercial insurance policy provides protection against cyber-related incidents. However, traditional commercial policies may provide limited protection or exclude certain cyber-related losses.

Dedicated cyber insurance may help businesses manage some of the financial consequences of covered cybersecurity incidents.

Depending on the policy, cyber insurance may include protection for:

• Data breach response and notification costs.
• Certain cyber-related business interruption losses.
• Ransomware and cyber extortion incidents.
• Digital forensic investigations and recovery expenses.
• Privacy-related legal expenses and liability.
• Certain incidents involving third-party technology providers.

Coverage varies by policy and insurer. Limits, exclusions, waiting periods, definitions and other conditions may affect whether a particular loss is covered.

Not every website outage, technology disruption or precautionary shutdown will qualify for insurance coverage.

That’s why understanding your policy is so important.

What should businesses do following the recent cybersecurity news?

The current situation is a useful reminder to take a proactive approach.

Speak with your IT provider. Ask whether the recently disclosed software vulnerabilities affect any systems or services your business uses, and what security updates or precautions may be necessary.

Review your business continuity plans. Consider how your business would operate if essential technology or online services became temporarily unavailable.

Understand your technology dependencies. Identify the outside software providers and technology platforms your operations rely on.

Review your insurance coverage. Make sure you understand what protection you have, what may be excluded and whether your coverage reflects the risks your business faces today.

Cybersecurity and cyber insurance serve different purposes. Good cybersecurity practices can help reduce the likelihood and impact of an incident. Appropriate insurance may help manage certain financial consequences when covered incidents occur.

Both are important parts of protecting a business.

Have questions about your cyber insurance coverage? We’re here to help.

At Munn Insurance, we believe in helping businesses understand their risks and make informed decisions about protecting what matters.

With the recent cybersecurity news, we’re offering a FREE Cyber Insurance Coverage Review to businesses throughout Newfoundland and Labrador and Nova Scotia.

Whether you already carry cyber insurance or have never considered it, our Commercial Lines team would be happy to:

• Review your existing insurance protection.
• Answer questions about cyber insurance.
• Help identify potential gaps in coverage.
• Discuss whether your current protection reflects your business needs.
• Explore available insurance options where appropriate.

There’s no cost or obligation. We simply want to help make sure you understand your coverage and have the right protection in place.

Let’s talk about your coverage

Call Munn Insurance at 1-855-726-8627 or request your FREE Cyber Insurance Coverage Review today by emailing Marcel, one of our cyber insurance experts at  [email protected]