October is Cyber Security Awareness Month, a good reminder that protecting your business now includes protecting its data, systems, and money online. Strong passwords and staff training are a great start. Cyber insurance adds the next layer: expert help and financial support if an incident does happen.

But every business uses technology differently, so the right policy depends on how you work. The best way to find it is to have a conversation with your broker. Here are five questions that will help Ontario small business owners get the most from that conversation.

1. What does cyber insurance cover for a business like mine?

Cyber insurance helps cover the costs of responding to and recovering from a cyber incident. That typically includes:

• Your own costs: IT forensics, data restoration, ransomware response, and lost income while systems are down
• Claims against you: legal defence and settlements if customers or partners are affected by a breach

Ask your broker to connect each coverage to your day-to-day operations. A dental office storing patient records needs different protection than a contractor who invoices by email or an online shop processing card payments.

2. Am I protected if someone tricks my team into sending a payment?

Many insurers offer social engineering fraud coverage, and it’s worth asking about specifically. These scams are increasingly common: an email that appears to come from a trusted supplier asks you to update their banking details, or a message that looks like it’s from the owner requests an urgent transfer.

This protection is often available as an add-on with its own limit. Ask your broker whether it’s included, how much it covers, and whether there are simple steps to follow, such as confirming payment changes by phone. Those steps are good practice for any business anyway.

3. Can I add cyber coverage to my current business insurance?

Often, yes, and your broker can help you choose the best way to do it. There are generally two options:

• A cyber endorsement added to your existing commercial policy. It’s a simple, cost-effective way to get core protection.
• A standalone cyber policy with broader coverage and higher limits, for businesses that handle more data or rely heavily on technology.

Ask your broker which option suits your business today, and whether it makes sense to review it as your business grows.

4. What security steps do insurers look for?

Insurers commonly ask about a few core security habits, and having them in place can help with eligibility and pricing. Before you meet with your broker, check whether you have:

☐ Multi-factor authentication on email, banking, and remote access

☐ Regular backups, stored separately and tested

☐ Staff training on phishing and suspicious payment requests

☐ A process to verify any change to banking details

☐ A simple plan for who to call if something goes wrong

The Canadian Centre for Cyber Security offers free, practical guidance for small businesses on each of these.

5. How much cyber coverage does my business need?

The right amount depends on your size, your industry, and how much your business relies on technology. Your broker will consider factors like:

• How many customer or employee records you store?
• How long you could operate if your systems went down?
• How you send and receive payments?
• Any contract requirements from clients or partners?

It’s also a good time to ask how your cyber coverage works alongside your other business insurance, so everything fits together.

Quick answers

Do small businesses need cyber insurance? If you use email, accept electronic payments, or store customer information, cyber insurance is worth considering. Small businesses are frequent targets because they often have fewer security resources.

How much does cyber insurance cost? Pricing depends on your industry, revenue, the data you handle, your security practices, and the limits you choose. A broker can compare options from several insurers for you.

The Merit Difference

These questions are best answered in a real conversation. At Merit Insurance, our brokers take the time to understand how your business works, from the information you store to the way you get paid. Then we help you find cyber coverage that fits your needs and budget.

You’ll always have a trusted broker you can call, and a real person who understands your business.

Contact Merit Insurance this Cyber Security Awareness Month to talk through your questions with a broker.

Please note: This article is for general information only and is not legal advice. Coverage depends on the insurer and your policy wording, and not all risks may be covered. Speak with your Merit broker for full details on coverage, limits, and exclusions.