A recent survey of small and medium-sized enterprises (SMEs) conducted by the Insurance Bureau of Canada (IBC) concludes that SMEs significantly underestimate the likelihood and complexity of a cyber breach. Most law firms would be considered a SME and data from the Business Development Bank of Canada shows that 73% of SMEs have had a cyber incident. Other responses from the IBC survey are that only 2/3 of SMEs are confident of their ability to withstand a data breach or website shut down and only half are prepared for a cyber attack. As for cyber insurance, only 22% of SMEs carry some type of cyber insurance and only 12% have a dedicated cyber insurance policy.
Suffice to say, given the steady increase in cyber incidents, these are not good numbers as cyber incidents can lead to significant legal and financial issues.
The IBC has developed a cyber insurance guide aimed at SMEs. Available at www.cybersavvycanada.ca, there is also a cyber insurance checklist, information on creating a cyber security plan and a short cyber assessment.