An accounting firm’s servers and backups were encrypted by ransomware. The firm was unable to access records and perform work for three days, but never received a ransom request. The firm’s IT contractor restored system access and recovered some files, but the records of 225 clients were unrecoverable and had to be recreated. Cyber insurance paid over $63,700 under the Network Asset Protection coverage component for the costs to recreate the lost data and the income loss resulting from the 3-day business interruption.
A few months later, the IRS alerted the firm of 11 fraudulently filed client tax returns. An IT forensic investigation concluded that the fraudulent tax returns were likely filed with client information that hackers exfiltrated from the firm’s computer system in the earlier ransomware event. Cyber insurance paid over $48,800 under the Privacy Breach Response Costs coverage component for IT forensics, a call center, breach notification costs, credit monitoring, and attorneys’ fees to draft the notification letters and provide breach guidance to the firm.
Overall, Cyber insurance paid over $112,500 for the claim.