Cyber Liability Insurance

Just as the holiday shopping season was about to begin, the Rokenbok toy company was in the middle of a business nightmare.

Online criminals from outside the country had encrypted the company’s files, demanding a hefty ransom to unlock the data. The company was losing thousands in missed orders by the day.

Worse yet, this cyber attack wasn’t Rokenbok’s first: earlier that year the company had been hit with a denial of service attack, shutting down their website.

“I sweated that one,” said CEO, Paul Eichen, in an interview with the New York Times. “Customers’ first impressions are critical.”

It took four days to reconstruct the data and the hackers were never caught.

Cyber liability is a question of “WHEN” not “IF”

Data drives the organizations of today’s world. Business of all sizes have had a cyber attack or data breach, with the average cost to rectify rising to$6.5 million per occurrence.

One stolen laptop, one careless employee, a virus or even paper records that fall into the wrong hands, can create a financial and reputational consequence affecting your business for years to come.

Real Life Claims

Healthcare

A healthcare clinic was a victim of a cyber attack in which patient information was stolen. Wanting a ransom payment of $13,000 in Bitcoin, they threatened to post all the data publicly. In the end, the clinic's cyber insurer helped fix the vulnerability, verify the hacker's claim, and consult with a crisis communications consultant. Because the data was found to be patient names and addresses, they decided not to pay the ransom and notified all affected parties.

The cost of the IT forensics team and the crisis communications consultant were covered under their cyber liability insurance. 

Manufacturing

An employee clicked a link within a ransomware email causing the company's service to be infected and all data to be encrypted. The hackers demanded over $13,000 within 48 hours and they'd send the encryption key. The manufacturing company's cyber insurer hired an IT forensics team to review and recover the data. 

The cost of this incident was a total of $60,000 and the company was guided through the entire process of recovering their data.

Professional Services

A law firm received a call from their bank claiming there was suspicious wire transfers in their account. The caller requested the firm's account login information to freeze the account, which they provided. The following day the firm employee contacted the bank only to learn they had no record of the incident. $118,830 had been transferred to multiple overseas accounts with no way to reverse. Because the employee had technically authorized the transfer, the bank could do nothing. 

The law firm's cyber liability policy was able to recover the funds.

What does Cyber Liability cover?

With a comprehensive cyber liability policy, you can feel confident you’re covered in case of data breaches and related issues, including:

  • Data compromise protection to cover employee and customer information if your data should ever be hacked, stolen (physical and electronic), corrupted, or subject to procedural errors or internal fraud
  • Legal cost protection incurred by legal reviews
  • Forensic services to assist in determining the nature, extent, and perpetrators of an electronic breach
  • Personal services for any persons affected, which may include help line services, credit monitoring and case managers for identifying theft victims.
  • Public relations costs paid for firms to review and respond to the potential impact of the data compromise
  • Costs of legal defense in an event that the company is sued due to the breach
    Identity recovery protection to identity fraud victims and restore their credit history and records. This includes owners, employees and family members.

We can help protect your business against damage to electronic data, virus or malware attack, liability to third parties, and also help recover the cost of:

  • Restoring and recreating data to your system
  • Restoring systems to pre-attack levels
  • Lost business and unforeseen expenses
  • Public relations services, to communicate with outside parties concerning a computer attack and your public response

Who is cyber liability insurance for?

Cyber liability coverage is available for any business, small and large, nonprofit organizations, and retailers. You may be able to save cost by bundling coverage with another policy to create a comprehensive suite of business liability coverages.

We can help you assess the risks to your business, and get you the protection you need in today’s data reliant world.

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We are happy to offer the ability to quote your own commercial insurance through CoverWallet! This tool works best for businesses with an owner and less than two employees. We recommend you contact us if your business has two or more employees, your receipts are over $350,000, or you have very specific or unusual Certificate of Insurance requirements to meet.

If your operations are outside of CoverWallet's availability or you have any questions, please contact us so we can assist you! 

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