What cyber claims have we seen lately?
Here are a few:
#1 – Information Exposed
A programming error within the computer system at a mid-size chain of clothing stores allowed customer information to become publicly visible on the internet. There were approximately 8,700 customers affected by this breach. The costs associated with the breach included customer notification costs, IT forensic expenses, legal fees, and public relations expenses, all totaling more than $125,000, which would be covered by cyber liability insurance.
#2 – Reputational Harm
After reporting a data breach to state officials, a regional CPA firm was featured in a series of news reports about recent data security breaches involving financial services corporations. The news reports were published at the start of the tax season. Due to the breach, related negative press and the timing (tax season), the firm experienced a significant downturn in business. BrandGuard® coverage reimbursed the firm for the demonstrated loss of net profit resulting from the data breach.