Cybercrime Insurance Coverage Caselaw: Welcome To Canada?

Co-authored by Bob Bell, Student-at-Law

Although several high profile cybercrime insurance cases have recently made headlines in the US, Canadian companies have been left wondering whether or not Canadian courts would follow the line of caselaw developing across the border. That wait is now over.

The first decision in Canada with respect to cybercrime insurance coverage was decided by the Alberta Court of Queen's Bench on June 29, 2017. The case highlights the need for robust cyber coverage, coupled with internal training and cross checks with external parties. In The Brick Warehouse LP v Chubb Insurance Company of Canada[1] the Court held that the Brick's insurance coverage for 'funds transfer fraud' under its crime coverage policy was not enough to protect the company from its losses of just over $200,000 due to social engineering fraud.