Insurance

July 14, 2025 Published by Huronia Chapter - By Holly Peroni

Cyber Event Insurance - A Safety Net

From the CCI Huronia Spring/Summer 2025 Condo Buzz Newsletter

In a world where our online footprint grows larger each day, concerns about cybersecurity and online threats are becoming increasingly significant. These risks can affect our privacy, compromise sensitive data, damage reputations, and lead to financial losses. Given these critical concerns, it is essential for condominium corporations to protect themselves, as the consequences of a cyber incident could be severe for the corporation, its board, and its residents.

Prevention, awareness, and education are key to managing cybersecurity. Preventive steps include implementing strong cybersecurity policies and procedures, educating the board and residents about online threats and how to recognize them, using appropriate cybersecurity software, and securing cyber insurance to help mitigate any financial losses. These best practices form the first line of defense against online predators, hackers, and scams.

Cyber event insurance complements the preventive efforts of board members and residents and is one of the most effective and cost-efficient ways to protect the entire group.

Cyber event insurance is available as part of a general liability policy. If an insured suffers a loss, insurance will cover damages and defense costs resulting from claims related to an actual or alleged breach of duty, act, error, or omission that results in a failure to protect private information or an unintentional breach of privacy laws. Additional features of cyber event insurance may include protection against wrongful publications, data misappropriation or breaches, business interruption, digital asset losses, crisis management, cyber extortion, payment card loss, social engineering, funds transfer fraud, and telecommunications fraud. Any significant online presence can expose an organization to these risks, and coverage is subject to the specific terms and limitations of each policy. Cyber event insurance can also include coverage for forensic investigations to identify the source of a breach and the costs of implementing improvements—adding another layer of protection and reassurance.

Having cyber event insurance in place reduces stress and can be a valuable addition to a corporation’s liability policy. When a cyber-attack occurs, the consequences can be devastating. These attacks are growing in severity, making cyber event insurance increasingly vital in today’s market. We all have a role to play in protecting ourselves and our organizations from evolving cyber threats by assessing our vulnerabilities and exposures. Once these are identified, appropriate insurance limits can be determined.

In our technology-driven society, businesses, corporations, and individuals face a growing number of cyber threats and the ongoing challenge of mitigating them. However, with the right knowledge and tools, we can navigate the digital world with diligence and confidence.

Holly Peroni
Associate Insurance Advisor III, Coorperators