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Comprehensive cyber insurance for Canadian mining: Strengthening resilience against cyber threats

Discover the critical role of comprehensive cyber insurance in enhancing cyber resilience for Canadian mining companies. Equip your mining operations with the knowledge to navigate cyber risks and secure a safer future.

05/22/2025 · 6 minute read

While robust cyber risk mitigation practices and controls are essential, cyberattacks can still occur, potentially leading to compromised data, business interruptions, and significant financial and reputational losses. Building further cyber resilience with a comprehensive cyber insurance program is crucial for Canadian mining companies, alongside these preventive measures.

Despite this, some Canadian mining companies may hesitate to purchase cyber insurance due to cost concerns or a perceived lack of value. As a result, cyber coverage remains underutilized in the industry, leaving companies vulnerable to greater exposures and losses. 

To more effectively protect their organizations, Canadian mining leaders should elevate their risk mitigation and management efforts with comprehensive cyber coverage. Here, we explore how mining leaders and risk managers can build the most effective cyber insurance programs for their unique organizational needs, referencing data from our recent report designed specifically for Canadian mining organizations.

The evolving cyber insurance market

From 2020 to the end of 2022, the cyber insurance market experienced limited capacity due to significant ransomware losses, resulting in coverage limitations, higher costs, and greater retentions. While larger mining companies in Canada may have been able to secure adequate limits, smaller and mid-sized firms often found the cost prohibitive or were wary of restrictive terms. This initial experience may have made some mining leaders reluctant to invest in cyber coverage.

Unearthing cyber risk and opportunity: The modern miner’s guide to buying cyber insurance coverage

Your guide to building cyber risk resilience and securing the future of your mining operations.

Download now

However, without cyber insurance, Canadian mining organizations effectively operate without a safety net. They would be solely responsible for absorbing the full financial impact of a significant cyber event. While larger organizations may have dedicated cyber risk management teams, smaller firms may lack this capacity. Furthermore, the constant evolution of cyber threats may not be fully understood across the sector, even amidst investments in technology aimed at streamlining processes and supporting data-driven decisions.

Fortunately, cyber insurance products have advanced in tandem with new technology, becoming increasingly sophisticated to address the evolving tactics of cybercriminals. Insurers are continuously refining their underwriting processes, focusing on cybersecurity controls and ongoing improvements to cyber postures.

In addition, increased cyber resilience among organizations in recent years means ransomware losses have moderated, leading to improved market conditions. Increased capacity and competition in the current market offer opportunities for excess layer premium reductions and overall program savings for many organizations. This presents a favourable moment for Canadian mining companies of all sizes to consider purchasing cyber coverage and better understand how these policies can protect their businesses and bottom lines.

Embracing comprehensive cyber coverage

The specific cyber coverage needs of a Canadian mining organization will vary based on its size, operations, and the regulatory environment. Typically, minimum recommended cyber insurance includes coverage for data breach response, data restoration, regulatory compliance, ransomware extortion costs, and business interruption.

However, considering comprehensive coverage is crucial to ensure adequate protection against a broader spectrum of risks. Basic policies may not sufficiently cover potential liabilities such as legal claims, environmental remediation, and third-party damages. Moreover, contractual obligations with suppliers, contractors, or service partners may require specific insurance coverage levels beyond the minimum. Investing in higher coverage limits can help Canadian mining organizations meet these obligations and maintain strong business relationships.

Explore different cyber coverage options and services below: 

This coverage provides protection and compensation to the mining organization itself following a cyberattack or data breach. Given the potential for substantial financial and operational consequences, robust first-party coverage is vital for safeguarding assets and maintaining business continuity. Common examples include:

  • Incident response: Expenses for mitigating the attack, restoring operations, and implementing security measures, potentially covering legal assistance, forensics, crisis communications, and privacy breach management.
  • Data restoration: Costs associated with recovering compromised or lost data.
  • Business interruption: Compensation for lost net income due to a cyber incident disrupting normal operations, potentially including dependent business interruption.
  • Cyber extortion: Covering ransom payments and negotiation expenses in the event of a cyber extortion demand.
  • Consequential reputational harm income loss: Compensation for income loss resulting from reputational damage caused by a cyber incident.
  • Hardware replacement: Costs of replacing or repairing damaged hardware.
  • Cybercrime: Addressing direct financial losses from a breach, such as fund transfer fraud or social engineering attacks.

The specific coverage and limits can vary depending on the policy and the mining company's needs and size.

This coverage pays for defense costs and damages owed to a third party (for example, vendors or subcontractors) due to a breach of the insured's systems or data. This can cover legal claims, investigation costs, and regulatory fines and penalties arising from the failure to prevent unauthorized access. Key third-party coverages include:

  • Network security and privacy liability: Addressing liability from allegations of inadequate data or systems protection leading to a breach.
  • Regulatory investigations, fines, and penalties: Covering costs associated with regulatory actions for non-compliance with data protection laws.
  • Media liability: Addressing liability arising from claims of defamation, slander, or infringement.

Appropriate third-party coverage protects both the mining organization and its partners from the financial and legal repercussions of cyber incidents that may originate within their supply chain or their own systems, fostering a more secure ecosystem.

This coverage addresses physical damage to property caused by a cyber incident, specifically to a mine's operational technology (OT). While standard property policies may have previously covered such damage, insurers have increasingly introduced cyber exclusions. Understanding the specific terms and conditions of cyber property damage coverage and any cyber exclusions is crucial to avoid potential coverage gaps.

Many comprehensive cyber insurance policies offer access to experienced cybersecurity professionals post-incident, providing invaluable support in managing the impact effectively. These experts specialize in legal matters, forensics, public relations, privacy breach notification, and credit monitoring.

Insurers typically have a panel of pre-approved vendors, though off-panel approvals may be possible. This support is highly beneficial for both small and large mining entities, regardless of their existing incident response plans.

Take steps to build long-term cyber resilience

Canadian mining organizations should proactively strengthen their defenses against cyber incidents as technology continues to evolve and present new risks. Understanding potential cyber loss exposures is fundamental to building an effective cyber insurance program that provides the right level of coverage. Conducting a cyber loss quantification study with the support of an experienced cyber advisor can provide detailed financial insights based on realistic cyber events, enabling mining leaders to determine the most suitable cyber coverage for their operations.

The Canadian mining organizations that thrive in this dynamic, tech-driven risk landscape are those that not only understand cyber risk management but actively address it with a strong risk culture, a robust risk management strategy, and tailored cyber insurance.

To learn more about building cyber resilience and minimizing the business interruptions to your modern mining operations, download Unearthing cyber risk and opportunity: The modern miner’s guide to buying cyber insurance coverage, a guide designed specifically for Canadian miners seeking to safeguard their businesses against the growing threat of cyberattacks.

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