Cyber Liability Insurance Claims Examples
The following are some claims examples which will assist you in explaining Cyber threats and the importance of Cyber Liability Insurance to your clients.
Travel agency with four locations, $10M turnover and 30 staff
- The Insured experienced three separate data breaches over a three-year period in which hackers gained access to the Company’s computer system. Over 250,000 individuals’ credit card information and passport details were compromised
- Policy Response: Privacy Protection, Breach Costs
- Outcome: $1,750,000 paid for the forensic and legal costs in defending the investigation brought by the regulator and the cost of notifying the affected individuals including providing credit monitoring services.
Charity with turnover of $18M and 80 staff
- The Insured was targeted with a denial of service attack (floods a targeted system with incoming web traffic until it is virtually crippled) in the last few days of a fundraising campaign. People were unable to make donations for a day while the website was being fixed.
- Policy Response: Cyber Business Interruption, Hacker Damage
- Outcome: $1,500,000 paid for the lost donations and rectifying the damage to the Insured’s website.
Online Retailer with turnover of $5M and 15 staff
- The Insured’s website was defaced and included a link to a competing retailer’s website when hackers gained access to personal information of their customers and overtook their website.
- Policy Response: Cyber Business Interruption, Hacker Damage, Privacy Protection, Breach Costs
- Outcome: $800,000 was paid for loss of income, cost of notifying the affected individuals including providing credit monitoring services.
Law firm with turnover of $2M and 8 staff
- The Insured’s server and client records were locked by Ransonware software. The Insured was only able to get the files released after paying a ransom of $50,000 to hackers.
- Policy Response: Cyber Business Interruption, Cyber Extortion, Hacker Damage, Privacy Protection, Breach Costs
- Outcome: $150,000 paid for the extortion claim, loss of income, costs of notifying the affected individuals including providing credit monitoring services.
‘Half a million credit cards stolen from Aussie business’ (CRN website 16th August 2012)
- Eastern European crime syndicate
- 500,000 credit card details stolen from POS terminals
- >$25M fraudulent transactions
- Policy trigger: Privacy Protection & Breach Costs
Russian hackers hold Gold Coast doctors to ransom’ (ABC News website 11th December 2012)
- Hackers encrypted sensitive medical information held on server
- Ransom demand of $4,000 to decrypt
- Director of Centre for Internet Safety says health professions are biggest target
- Policy trigger: Cyber BI, Hacker Damage & Cyber Extortion