Why cyber insurance matters and what it covers
Cybercrime is no longer a distant threat and has become a daily reality for businesses of every size in Canada. According to a poll by the Business Development Bank of Canada , 73% of Canadian organizations have experienced at least one cyber security incident.
Unfortunately, many of those businesses are unprepared to respond. Luckily, cyber insurance is designed to fill that gap.
Cyber insurance at a glance
Cyber insurance provides both financial protection and access to expert resources. This helps organizations respond quickly and effectively when something goes wrong. Here is what cyber insurance can cover:
Financial losses
- Costs of restoring systems and data after ransomware, viruses, or other attacks.
- Business interruption coverage if your company cannot operate because of a cyber event.
- Expenses to notify affected customers and provide credit monitoring services.
- Legal defense costs if a client, regulator, or third party sues due to a breach.
Ransomware and extortion
- Payment negotiations with cybercriminals.
- Costs related to restoring access to your systems.
- Expert response teams to guide you through the process safely.
Regulatory requirements
- Coverage for fines and penalties (where insurable by law).
- Support in complying with privacy regulations such as PIPEDA.
Expert support
- 24/7 access to a breach response team.
- Forensic investigation services to determine how the attack occurred.
- Public relations support to protect your reputation and client trust.
When a breach happens, support matters
For small and medium-sized businesses, these protections can be the difference between a temporary setback and permanent closure. Furthermore, the average ransomware demand is $1,324,439 according to the Sophos 2025 State of Ransomware report . The actual cost of the event is much higher with costs to manage and investigate the breach additional to the demand itself.
While it’s not a replacement for strong cybersecurity practices, cyber insurance is an essential layer of protection. It ensures that when an incident happens, you are not alone and you are not facing devastating costs without support.
At Westland, we’ll work with you to discuss further how cyber insurance can be an important layer of protection for your organization. Talk to an advisor today .
