The Real Price Tag of Cyber Risk Insurance Claims

Cyber Risk Insurance

Cyber incidents have become one of the biggest risks to businesses worldwide, and businesses are combating that threat with insurance. Cyber risk insurance claims examples are vast and varied. Listed below are several real-life scenarios. Source:

Network Security

A computer virus was mistakenly downloaded to the company’s network, which caused loss of data. The virus was then transmitted to a client’s computer network, which resulted in litigation costing the company three-quarters of a million dollars in damages.

Customer Privacy

An engineering firm employee acquired access to a customer’s trade secret, which he then sold to a competitor. The customer was awarded over half a million dollars in the ensuing litigation.

Stolen Identities

The hacking of a company’s computer system resulted in stolen bank account information and social security numbers of employees. Damages from lawsuits reached nearly one million dollars.

Lost Data

An employee inadvertently left a company laptop on a train. The laptop contained sensitive customer information. Customers were notified that their private financial information was no longer safe, which resulted in litigation costs of $350,000.

Social Engineering

A person posing as the CFO of a company sent a request to the controller asking for employee W-2s. The filing of false tax returns resulted in costs of more than $250,000.

These cyber risk insurance claims examples show the serious hazards that businesses face. Smart companies take proactive measures to combat that threat.