As organisations rely on IT systems to manage most of their critical business systems, insurance policies that adequately protect a firm’s IT infrastructure against interruption as a result of a successful hack is essential
In this month’s Cyber Blog from MGAM, we look at how the MGAM Cyber Policy could provide support when you need it most.
The Insured specialises in the manufacture of drainage and storage handling systems.
They discovered that it had been the victim of a ransomware attack, encrypting business critical data and resulting in a loss of production.
Where is this covered?
Business Interruption is an insured event under the Insuring Clauses of the MGAM Cyber policy.
Where the operation of your network is degraded or interrupted as the result of a cyber-attack, the policy will pay any resultant loss of income you suffer including expenses incurred to mitigate and investigate such a loss.
What was the outcome of the claim?
The Insured’s production levels may have been impacted for up to 3 months following the ransomware attack.
An IT vendor was appointed to repair and restore the Insured’s systems. Insurers arranged for a Forensic Accountant to assist the Insured in calculating the Business Interruption Loss suffered. This was estimated at £190,000, calculated from the reduction in Gross Profit following the incident.