CASL Insurance – Is It Available & What Does It Cover?
Q. What is CASL aka Canada’s Anti-Spam Legislation?
A. On July 1, 2014, the provisions of Canada’s Anti-Spam Legislation (CASL) that regulate commercial electronic messages (CEMs) will come into force. In order to send a CEM, you will need to be able to prove that you have consent from the recipient.
There are two types of consent: express and implied. If a recipient gives you written or oral permission to send messages, you have express consent. This could come from a recipient checking a box on your website, signing a form or leaving a voicemail message for you. Express consent never expires, although a recipient can revoke it at any time by unsubscribing. Good practice will be to obtain express consent from as many clients and prospects as possible.
If you have a pre-existing business or non-business relationship with the recipient, you have implied consent. Implied consent could come from an exchange of business cards or finding a prospect’s email address listed on his or her company website. You also have implied consent automatically from your current clients and active prospective clients.
There is a three-year transitional period written into the law that allows senders who have implied consent from recipients to contact the recipients and obtain express consent. Following the three-year period, implied consent expires after six months if a prospect does not become a client, or after two years if a client does not renew the relationship.
Fines & Penalties For Breaching CASL
Organizations that don’t comply with CASL risk serious penalties, including criminal charges, civil charges, personal liability for company officers and directors, and penalties up to $10 million.
Q. Is CASL Insurance Available & Can CASL Insurance Cover Fines & Penalties?
A. Yes. CASL Insurance is available and there are a limited number of insurers that will provide coverage for defence costs associated with responding to CASL allegations as a standalone product. In addition, there are also a few insurers who have CASL Insurance products that provide coverage for defence costs and fines and penalties.
Speak to an ALIGNED Insurance Advocate to learn more about CASL Insurance and steps you can take to protect your organization from CASL fines & penalties or connect with us at www.alignedinsuranceinc.com
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