Actual cyber claims reported in 2017

Cyber Liability Claim for Beauty Products Distributor - Annual premium: $2,500

The company experienced a ransomware attack to their accounting and online ordering system. The server housed social security numbers and credit card numbers. Service was restored but the insured’s most recent backup was 6 months prior to the attack. The insured worked with forensics to assist in determining what information, if any, was breached and closing the access to their servers. The insurance company anticipates claims cost of approximately $20,000 for data restoration and computer forensics.

Cyber Liability Claim for Non-Profit Organization - Annual premium: $20,000

The organization had a credit card breach with approximately 12,500 credit card holders affected. Malware was installed in the insured’s systems and hackers accessed the database of credit card numbers and security codes. Costs have been incurred for a legal team, computer forensics, and notification expenses. The insurance company has paid approximately $100,000 and additional costs are expected.

Cyber Liability Claim for a Wholesale Distributor - Annual premium: $2,100

An individual deceived the sales department by portraying themselves as an existing customer and placed an order for approximately $22,000. The items were shipped and when the insured followed up for payment, it was discovered the order was fraudulent. The insurance company anticipates payments being made soon for the loss.

Cyber Liability Claim for a Self-Storage Unit Management Company - Annual premium: $11,000

This is an interesting claim involving a supply-chain attack. An outside vendor provides a utility that runs on the insured’s computer to provide updates to each of their clients. A hacker got into the vendor’s software and inserted malware into the updates they were providing to each of the storage businesses. When the clients ran their updates, they were infected with the malware. While the computer forensics team is investigating and legal counsel is being secured, the insurance company is reserving $40,000 for this file.

Cyber Liability Claim for a Real Estate Company- Annual premium: $2,500

There is a class-action lawsuit and claim for statutory damages involving the TCPA or “Telephone Consumer Protection Act” that restricts the use of automated dialing for solicitation. The insurance company has a $20,000 reserve on the file and counsel is determining legal obligations for the insured.