These Businesses Were Glad They Invested in Cyber Insurance
Cyber insurance- you’ve probably heard of it, and may or may not have come to the conclusion that it is necessary for you or your business. However, if you’ve previously decided that cyber insurance is something you don’t need, it is likely that you’re wrong. Below, are real-life scenarios that demonstrate how cyber insurance comes into play to save businesses from the vast and costly damages incurred by a cyber-attack.
To familiarize yourself with cyber insurance-related terms used in these scenarios, click here.
Claim Scenario #1: Ransomware | Real Estate Rental and Leasing
Situation
An employee of an independent real estate brokerage accidentally clicked on a malware link. The virus was downloaded onto the company server causing all data to be encrypted. The employee then received an email demanding $38,000 paid in Bitcoin within 48 hours to release their data files.
2,500 customer records including name, address, phone and social security number were encrypted. The brokerage called their insurance company’s cyber response team, who responded by assigning a “breach coach,” which is covered as part of the brokerage’s stand-alone cyber policy.
The breach coach sent in a forensics team to assess the situation, including any computer or electronic hardware damage, and determine if paying the ransom was necessary. Concurrently, the insurance company confirmed coverage and assisted with opening a claim to minimize the effect of business interruption.
Potential Impact
Resolution
While the business maintained regular back-ups online, the hackers also encrypted these files leaving the brokerage no way to restore the data. The insurance company and breach coach agreed the fastest, best way to get the business back up and running was to pay the ransom.
The insurance company immediately paid the ransom via their pre-established Bitcoin account, releasing the records back to the brokerage. The swift assessment and payment minimized the business interruption allowing the brokerage to resume operations.
Claim Scenario #2: Outdated Software | Real Estate Rental and Leasing
Situation
Hackers penetrated a farm equipment leasing company’s network from a vulnerability in an outdated software application. 1,150 company names, emails, credit card information, and banking details were compromised.
Local authorities received multiple complaints of suspicious activity, leading the company’s IT department to discover an unauthorized user had accessed the system.
Once discovered, the company called their insurance carrier who immediately brought in forensic experts to initiate the company’s IT recovery plan and notification program.
Potential Impact
Resolution
The company’s cyber policy was triggered, giving them immediate access to response services. The insurance company dispatched a forensic team who quickly isolated the unauthorized user.
A claim was started immediately to help with impending legal, consulting and media costs. The insurance company, IT team and forensic consultants ensured the company had up-to-date cyber defenses including firewalls, intrusion detection software, and encrypted databases.
Concurrently, officials worked with local media to notify affected customers and offer credit monitoring services, while the legal team handled the backlash from those affected. Finally, the forensic consultants helped develop a new plan that included regular updates, testing, and education of all staff to minimize future breaches.
These scenarios demonstrate how a cyber-attack can occur from something as simple as outdated software, or the accidental click of a link, and incur vast, potentially catastrophic damages. Because these businesses had cyber insurance, damages were minimal and they were quickly able to resume normal operations.
To learn more about cyber insurance click here.
Should you have any questions regarding your current coverage or want further information on these points, Basin Pacific Insurance is here for you. For more information on cyber insurance coverage offered by Basin Pacific Insurance, click here, Or contact us at (509) 765-4785
Blog courtesy of McKenzie Realty
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