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Why Your Business Genuinely Needs Cyber Insurance

An Overview of Submitted Cyber Insurance Claim Examples


Cyber Ransomware Insurance Claims

  • A NJ nursing home was hit by a ransomware attack of which numerous files became encrypted. The cyber criminals wanted an approximate sum of $30,000. At first the nursing home paid a slight portion of the ransom in order to receive a decryption tool sample. Then, the management opted to depend on its backups for a system restoration. Fortunately, no damage was incurred to any personal identifiable info. However, some critical systems vital to the nursing home’s operation had become unworkable, resulting in a $250,000 repair bill. The home also had to pay another $50,000 for breach coach and forensic vendor services.

  • When a NY hospital experienced a $500 ransomware attack, its facility was significantly compromised. The hospital attempted to restore data via its own systems at a large cost. Ultimately, more than $700,000 was issued to forensics, data recovery, business interruption and crisis management costs.


Cyber Phishing Insurance Claim

  • A company in MD became victim to a phishing attack when an impersonator sent an email with the CEO’s address on it to the payroll human-resource administrator. The fraudster succeeded in getting a hold of the business’s W2 forms, replete with personal info of about 4,000 past and present employees. One of the former workers filed a class action negligence suit against the company. As a result of the phishing attack, the company paid $70,000 for legal defense, notification and call center services and credit monitoring.


Cyber Business Interruption Insurance Claim

  • A NJ business experienced a denial of service attack from an unidentified source, causing a twenty-two hour website interruption and a sustained degradation for another four days. The subsequent business interruption insurance claim involved the corporation’s lack of ability to sell subscriptions via its website, resulting in $750,000 losses, as well as $40,000 expenditure for forensic accounting services.

 

For further information on how cyber insurance can help your business, contact Prime Insurance Agency.

PRIME Insurance is a three-generation family-run independent agency. We’re proud partners with many of the leading companies in the industry – big names such as ACE, ASI, ASSURANT, CHUBB, CNA, FOREMOST, Liberty Mutual, MetLife, PROGRESSIVE, Safeco, StillWater, Travelers, USLI, ZURICH and more. With thousands of satisfied customers, we benefit policyholders by reviewing current coverage, as well as by shopping our wide network to locate customized policies at competitively lowest quotes.

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PRIME Insurance provides all forms of NY, NJ, PA, MD and other US state coverage, including auto, commercial,  flood, renters, homeowners, bonds, workers comp, life insurance and more. We invite you to experience the PRIME difference by visiting us on our online insurance website; emailing us at PRIME [at] primeins [dot] com or calling us at 732-400-5242!

 

Summary: Cyber Liability Insurance is one of the most important forms of coverage your company can have. See genuine claim examples that underscore the need here.


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