For any business today, the reality of day-to-day functioning and management involves mass-communication, networking, marketing, and the organization of important confidential information on secured computer networks. Digitalization of information and communication is becoming second-nature due to the efficiency and simplicity that computers provide, as well as their instantaneity. However, as the amount of important and confidential information being stored on computer networks continues to grow, so does the risk of becoming an appealing target for scammers, fraudsters and cybercriminals. This correlation makes it arguable that cyber liability insurance will soon become one of the most important forms of insurance on the market.

This paper aims to clarify the impact cyberspace and cyber-liability has, has had and will continue to have on businesses in this modern age. The continuing, and ever-growing risk of data and security breaches in the midst of more and more information being stored on computer networks illustrates the need to understand cyber-liability generally, and what exactly may be covered in a cyber liability insurance policy. For that reason, this paper begins by clarifying the risks and implications of data loss, cyber-attacks, viruses and other cyber threats. It then examines the growing relevance of cyber liability insurance, and ends with a summary of how cyber-liability has been addressed in the courtroom thus far.

An overview of Canada's first cyber insurance coverage decision, The Brick Warehouse LP v. Chubb Insurance Company of Canada, 2017 ABQB 413, is provided within this paper. The decision dealt with the interpretation of a commercial crime policy in the instance of a fraudulent transfer.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.