Cyber Breach, the implications on your business and How I can make your life easier By Joseph Carnevale, CIP Partner & Director of Sales Brokers Trust Insurance Group Inc.

Agenda What is a Cyber Breach? Laws have changed Protecting your business form a cyber breach How are we different? Are you and I a good fit? Set up a meeting

What is a Privacy breach? A privacy breach is the loss of, unauthorized access to, or disclosure of, personal information. Some of the most common privacy breaches happen when personal information is stolen, lost or mistakenly shared. A privacy breach may also be a consequence of faulty business procedures or operational breakdowns. Name, address, phone Number, DOB, possibly financial information such as credit card and SIN. It is NOT a question of if one will happen to your business, but when

Laws have changed in Canada effective date for reporting a breach is November 1st. 4 key areas for steps in responding to a breach to the government: (1) breach containment and preliminary assessment; (2) evaluation of the risks associated with the breach; (3) notification; and (4) prevention.

Protecting your business from a cyber breach You need an Insurance Policy with the proper limits Most important part is understanding where your exposures are and what limits of insurance you require - An Experienced broker is essential In order to do this I would conduct a detailed analysis of your business which will include a Detailed application Understanding and Calculating your required limits is crucial

Understanding your costs/exposure When you have a cyber breach, you will have the following costs to consider in your calculations (they will vary depending on the size and scenario): Crisis Management ($1,000 - $25,000+) Forensic investigation ($2,000 - $150,000+) Forensic assistance ($1,000 - $200,000+) Notification ($2 - $5 / affected individuals) Call handling ($10 - $40 / Call) Credit/fraud monitoring ($150 / individual per year) Note: Estimates provided by Intact Insurance

Summary of Sample Costs per breach 25 People 100 People 1,000 People 10,000 People Legal $5,000 $10,000 $25,000 Forensic Investigation $2,000 $4,000 Forensic Assistance $1,500 $12,000 $20,000 Notification $88 $350 $3,500 $35,000 Call Handling $171 $682 $6,820 $68,200 Monitoring Costs $938 $3,750 $37,500 $375,000 Costs per Occurrence $9,695 $15,282 $79,820 $548,200 Costs per Record $377.82 $152.82 $79.82 $54.82 Costs do NOT include any expenses for legal defense, regulatory proceedings fines and penalties, PCI fines and assessments or any other liability driven expense. Note: Estimated provided by Intact Insurance

Typical Coverage Available on your Policy Most Insurers today will offer some sort of Cyber Breach Option on your Commercial General Liability or E&O Policy These limits tend be low. Usually around $25,000 or $50,00 with many restrictions and sublimit on important items. There is normally Not an application process for this type of endorsement You may have not purchased this endorsement and/or it may not suit your needs either Businesses looking for higher limits are required to complete detailed applications and have practices and people in place to minimize their exposure. In order to obtain higher limits you must have A consultant review and monitor your business regularly otherwise you will not qualify for the level of coverage that you require

Implications of getting hacked Clearly, Not having a Cyber Policy OR Not having the proper limits may bankrupt your business! We can help you protect your business.

Today’s Problem for Business Owners Not all brokers are comfortable with this type of policy. And for the ones that are, Most of them will just send you a complex application that needs to be completed in order to obtain a quote and wait for you to figure it out The problem is that Most business owners don’t have the technical expertise to complete the application accurately and may not already have security measures in place in order to obtain the type of insurance and limits that are required This is a difficult process and one that involves coordinating with different people, firms and skill sets

How are we different? I have teamed up with Brandon Krieger from GoSecure Cyber Security and we work together to provide you with seamless integration between: assessing your current security measures, implementing solutions, ongoing monitoring and your cyber breach insurance policy with the proper limits We make it easier for you to get the solutions you need to keep your business running, secure and insured.

Are you and I a good fit? YES, we are a good fit! You are A Business owner that understands and appreciates value Your business Utilizes a data base, has many computers/laptops/servers in your office(s), You have a website or conduct business and transactions over the internet You keep hearing about other businesses being hacked and you don’t know how vulnerable your own business is and whether you have the proper insurance and limits in place You want a broker that is innovative, experienced, professional, thorough, has access to many of the best insurers and is well respected. YES, we are a good fit!

How to set up a free no-obligation review Email me your name, business name, address, phone number, a brief description of your business operations and provide me with your availability over the coming weeks. I will confirm which date we will meet to review your cyber breach needs at your convenience. Joseph.Carnevale@brokerstrust.ca