Cyber

3 Scenarios in which a business will be glad they have cyber insurance

Cyber security can seem like an incredibly abstract issue – until a breach takes place and the virtual becomes reality very quickly. Whether a security breach is as a result of negligence, or your business is the victim of a targeted attack, activating your cyber insurance claim with our team of cyber experts is the most effective way to implement damage control.

Here are some examples of cybercrime claims scenarios, and how the iTOO Cyber team could assist.

SCENARIO 1: Your network is held hostage

An employee clicks on a link in an email and malware is downloaded, which encrypts all the information throughout your organisation. A ransom demand is received requiring payment in 24 hours in exchange for the key to decrypt the information.

Policy trigger: network security breach (malicious code)

Potential incident response costs could include: 

  • Specialists’ costs to recover operations and calculate lost revenue as a result of downtime
  • Increased cost of working i.e. overtime once the information is decrypted
  • Extortion negotiation fees
  • Actual extortion payment
  • Specialist costs to contain and remove the malware as well as recover data
  • Forensics
  • Legal consultation fees 
  • Incident response manager fees

SCENARIO 2: Confidential information is leaked

The incorrect attachment on an email is accidentally sent by someone in your organisation to a third party. The attachment contains personally identifiable information belonging to employees and customers.

Policy trigger: privacy breach

Potential incident response costs could include: 

  • Credit and identity theft monitoring
  • Expenses for those whose personally identifiable data was disclosed
  • Forensics
  • Legal consultation fees for defence and settlement of ensuing liability claims
  • Incident response manager fees.

SCENARIO 3: A hack leads to downtime

An online platform provider suffers a denial of service attack which results in their clients not being able to access their hosted portals for several hours.

Policy trigger: network security breach (denial of service attack)

Potential incident response costs could include: 

  • Specialists’ costs to recover operations and calculate lost revenue as a result of downtime increased cost of working i.e., overtime once the portals are back online
  • Costs to set up and operate a call centre for enquiries
  • Public relations expert fees to minimise the reputation damage
  • Forensics
  • Legal consultation fees
  • Incident response manager fees

As these scenarios show, the costs of a cyber attack can be far-reaching and arise long after the actual crime has been committed. Many organisations are unprepared for the financial expenses involved in such an event, and this is where a cyber insurance policy can be an extremely effective safety net. Besides the financial cushion though, cyber insurance means a business has the resources to pull in cyber experts, which can be crucial to protecting their proprietary information (and competitive advantage), and helping them get back to normal operations as quickly as possible. 

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