With an increasing number of cyber criminals actively targeting small businesses, a data breach could have disastrous consequences.
In this months Cyber Blog from MGAM, we look at how the MGAM Cyber Policy could provide support when you need it most.
What happened?
An Insured involved in the finance industry received an email from a “bad actor group”, stating that they had used malware to extract the Insured’s customer data.
The protagonists challenged the Insured to secure their system to prevent further access and threatened to release the information to the general public.
Where is this covered?
Breach Expenses are insured events under the Insuring Clauses of the MGAM Cyber policy.
Coverage intent
Where you suffer a data breach, privacy breach or security breach, the policy will reimburse you for the costs to respond to such an incident.
These costs may include forensic expenses to investigate the incident, notification expenses, costs to set up a call centre for affected individuals, credit monitoring expenses and costs to appoint a public relations consultant to mitigate any resultant reputational damage caused by the incident.
What was the outcome of the claim?
An IT vendor from our insurers panel was appointed by the Insured to investigate the alleged breach and determine if any personally identifiable information may have been extracted.
A panel law firm was instructed to advise the Insured on the potential notification requirements.
A panel PR firm was appointed to assist with media and communications with affected data subjects.
The law firm advised that the Insured should provide ID theft and credit monitoring services and a vendor from our insurers panel was instructed, additionally setting up a call centre to respond to any customer queries or complaints.
The Insured was indemnified approximately £250,000 for the costs incurred with the panel vendors including notification costs and credit monitoring costs.