To give you a better understanding of how our Cyber Insurance product works in practice, we've put together some short summaries of cyber claim scenarios. These examples are designed to help you place business with confidence and show your clients the value of comprehensive cyber cover.
Example 1 - data breachBackground An insured’s system was compromised, resulting in client data being exfiltrated and published on the Dark Web. The insured obtained an injunction to prevent media coverage and paid a ransom to have the data removed. Response The policy responded to cover legal expenses, IT forensic costs, and the extortion payment. Total incurred was approximately $500,000. |
Example 2 - email compromiseBackground An insured suffered a business email compromise, exposing a significant amount of client data. Immediate legal and IT forensic support was needed before a formal coverage position could be finalised. Response The Advancement of Incident Response Expenses Extension endorsement meant that incident response costs incurred through panel vendors were covered while a coverage position was being finalised, and even if the claim was declined, the costs incurred up to the date of declinature would be covered by the policy. This gave the insured comfort and certainty to engage specialists to address the incident as quickly as possible. Lesson Demonstrates the value of the Advancement of Incident Response Expenses Extension and the importance of immediate incident response support.
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Example 3 - supplier email scamBackground A hacker breached the system of an overseas supplier and emailed the insured with fraudulent bank account details. After a phone call with a party they believed was the supplier, the insured mistakenly assumed the new details were legitimate and transferred a significant payment to the hacker. Response The policy responded under the $250,000 social engineering sub-limit. Lesson Even with verification steps, fraud can occur - highlighting the importance of social engineering cover.
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Example 4 - denial of service attackBackground An insured’s website - critical to their sales - was taken offline for several days due to a denial of service attack, resulting in a significant business interruption loss. Response A forensic accountant was engaged to assess the loss, with all costs covered by DUAL (not eroding the deductible or policy limit). The insured’s loss of $150,000 was covered under the policy.
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These are hypothetical claim scenarios only and any outcomes depend on claim specifics, policy terms and conditions and individual circumstances. |
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Knowing who to call when a cyber event occurs is critical, so every DUAL Cyber Insurance policy comes with access to hotline support provided 24 x 7 through our dedicated incident response team and backed by a panel of specialist service providers.
In the event of a claim or loss, contact the Cyber Incident Management team.
P: +64 (0)4 831 0243
P: 1 844 502 9237
E: cyber.incident@canopius.com