Why Cyber Insurance Matters More Than Ever In Ontario
October is Cybersecurity Awareness Month – a great time to change your passwords and stay alert for suspicious links. But in 2025, those basic steps just aren’t enough.
With cyber threats becoming more frequent and sophisticated, more Ontarians are starting to ask: “If I were the victim of a cyberattack, would my insurance actually protect me?”
For many, the answer is no – not without cyber insurance.
Cyber Threats Are Rising In Ontario
From phishing scams to ransomware attacks, Ontario continues to see a sharp increase in cybercrime – targeting everyone from local school boards to small businesses.
- 58% of Canadian small businesses experienced at least one cyber incident in 2024.¹
- Ontario leads the country in phishing and ransomware attempts.
- The average cost of a data breach in Canada has soared to over $7 million CAD.²
And it’s not just businesses. Individuals — especially seniors, students, remote workers, and anyone with a digital footprint — are increasingly at risk.
What Is Cyber Insurance?
Cyber insurance provides financial protection against a wide range of cyber-related threats and events, including:
- Data breaches
- Ransomware and cyber extortion
- Phishing and social engineering
- Identity theft
- Business email compromise
It can help cover:
- IT forensics and data recovery
- Legal costs and privacy breach fines (especially under Ontario’s PHIPA)
- Business interruption losses
- Crisis management and PR
- Mandatory breach notifications
Cyber Insurance for Individuals
Many insurers now offer personal cyber coverage, often as an endorsement to home insurance. This can protect you from:
- Identify theft and fraud
- Cyberbullying and online harassment
- Financial loss from phishing scams
- Online extortion or ransomware attacks
This coverage is especially worth considering it:
- You work remotely
- You use smart home devices
- You bank, shop, or store documents online
- Your children or teens are active online
Why Ontario Businesses Need It
Whether you’re running a retail store, a law office, a clinic or a consultancy – if you store data, take digital payments or rely on cloud-based tools, you’re vulnerable.
Real Cyber Crime Claims In Ontario:
- A Toronto law firm locked out of its system by ransomware
- A Durham Region bakery with a hacked POS system, exposing customer payment info
- A London physiotherapy clinic fined under PHIPA for a data leak.
It’s important to note that traditional commercial or property insurance does not cover cyber incidents unless cyber coverage is specifically added.
How to Protect Yourself (and Your Business)
Even with insurance, prevention is your first line of defense. Here are five key tips to strengthen your cyber hygiene:
- Enable multi-factor authentication (MFA) on all important accounts.
- Use antivirus and anti-malware software across all devices.
- Back up your data regularly – ideally offline or in the cloud.
- Train your family or team on phishing, scams and safe online habits.
- Review your insurance policies to confirm that cyber coverage is included.
Cyber coverage isn’t a luxury – it’s a necessity.
Cyberattacks are no longer a distant threat – they’re happening here, and they’re hitting hard. The financial impact is only part of the damage. Downtime, lost trust, legal risks, and long-term reputation harm can be devastating.
This Cybersecurity Awareness Month, make cyber protection part of your risk management strategy:
- Review your current insurance
- Ask your broker about cyber endorsements
- Add cyber to your annual risk checklist
Protect Yourself Before You’re A Target.
Whether you’re a business owner handling sensitive data or a family managing your digital life at home, having the right cyber insurance can make all the difference.
Let’s Talk. Our brokers are here to help you:
- Assess your cyber risk
- Review your current coverage
- Recommend affordable, tailored cyber insurance options
Sources:
Canadian Federation of Independent Business, 2024
IBM Cost of a Data Breach Report, 2024