Cyber Liability Insurance – Phishing Attack and Business Interruption Real Life Claims

Cyber Liability Insurance – Phishing Attack and Business Interruption Real Life Claims

Cyber Liability InsuranceChances are if you have business insurance, then you probably own a business. If you own a business, then there is a good chance that you use a computer. And, if you use a computer, then you need cyber liability insurance coverage. There are some super smart bad guys in our world. And for some reason, these bad guys love to hack your computers, get your employees’ and clients’ personal information and cause you all kinds of problems.

Below are two such stories and the resulting claims that have recently been paid by Chubb Insurance.

Phishing Attack – Cyber Liability Insurance Claim #1

Insured was the victim of a spoofing attack whereby a bad actor contacted the company’s payroll/HR manager impersonating the email address of the company’s CEO. Pursuant to the spoofing email, the bad actor requested the company’s 2016 W2 forms. These forms included names, addresses and social security numbers of the company’s current and former employees.

Before it was determined that the company was subject to a spoofing attack, the W2 forms were transmitted to the bad actor. Approximately 4,000 current and former employees of the company were affected.

Thereafter, a former employee of the Insured, whose personal information was compromised in the breach, filed a class action lawsuit against the Insured alleging that the Insured negligently failed to protect its current and former employees’ personal information.

As a result of this attack, $70,000 was spent for legal fees, notification and call center services, and credit monitoring. Defense Costs will be covered under the terms of the Policy as well.

Business Interruption Claim – Cyber Liability Insurance Claim #2

Insured was the victim of a denial of service attack from an unknown source. The attack caused a 22-hour outage to the company’s website and a continued degradation of service for an additional 4 days. The incident resulted in the company’s inability to sell subscriptions to customers through its website. This event resulted in $750,000 in business interruption losses and an additional $40,000 was spent on forensic accounting services.

How to Make Sure Your Business Is Covered in a Cyber Liability Event

Data breach and cyber liability insurance claims are stories that we hear about quite often. However, they affect other businesses and other people, but not us. Unfortunately, these events are becoming more and more common and no business is safe. The cost for the insurance coverage to protect your business is minimal compared to the cost of handling the disaster yourself. At RCI Insurance Group, we have a team of dedicated business insurance professionals who can shop multiple companies. They design an insurance plan that is right for you and at a cost you can afford. Call us today!

2017-10-02T19:31:37+00:00

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