Cyber claim examples (2024)

FAQs

What is an example of a cyber claim? ›

An employee at an engineering firm found a way through his company's network security defenses and gained access to a customer's trade secret. The employee sold the trade secret to a competitor. The customer sued the engineering firm for the failure to protect the trade secret and was awarded for damages.

The average cybersecurity insurance claim cost for a small to medium enterprise is $345,000. The average cybersecurity insurance claim cost for an SME for a ransomware event is $485,000. The average claim for all organizations is $812,360.

Here's an example:

A hacker executes a Denial of Service Attack (DoS) that shuts down the facility. The manufacturer is entirely down and unable to generate any revenue for 3 weeks while it restores its systems.

An attack on the FriendFinder adult dating website compromised the data of 412 million users. Yahoo's data breach incident compromised the accounts of 1 billion users, not long after a previous attack exposed personal information contained in 500 million user accounts.

4 common causes for cybersecurity claim rejections

According to the Cyber Management Alliance, it's estimated that 27% of cyber insurance claims were denied or only partially paid due to exclusions in coverage.

Over 90% of Cyber-Attacks Begin with Phishing - How Can Attacks be Stopped? Phishing is now so common that almost all (96%) businesses suffer from its ill effects, including credential theft, Business Email Compromise, and ransomware infection.

Fend Off Phishing : Learn how more than 90% of all cyber attacks begin with phishing.

This covers a business for liability actions brought against them due to a network security or privacy event, such as the failure to prevent the theft of personal data. Typical third-party cyber insurance covers: Damages: damages that the insured business is legally obliged to pay to third parties.

What can I claim for business interruption? ›

Business Interruption: While commercial property pays for actual physical damages or losses, BI covers lost net income due to the closure of the business while repairs are underway. These policies may cover rent or lease payments, relocation costs, employee wages, taxes, and loan payments.

Tricking insiders into sharing confidential or personal information or making a payment, often through an email that appears to come from a friend, a well-known brand or business partner, possibly resulting in data breach or business interruption if an attacker gains entry to the network.

A firm's employee unwittingly clicks a link in a phishing email resulting in ransomware locking out the firm's ability to utilize business critical technology until a ransom demand is paid (or they're able to restore network from back-ups).

Potential future lost profits

But they won't cover profits lost after an incident as a direct or indirect result. Devaluation of affected data, a company's diminished market share, profits lost due to reputation damage—most policies exclude such potential losses.

According to a report by Beazley, the average cost for a cyber insurance claim stands at $600,000. The financial services sector experiences the highest average cost per claim, which is $1.2 million.

Common cybersecurity vulnerabilities that cybercriminals can exploit include weak credentials, lack of data encryption, misconfigurations, out-of-date software and zero days.

Cyber Tort can simply be described as tort or violation of a right done over Cyber Space. Example of Cyber torts:- - Email & Text harassment - Cyber Stalking - Dissemination through the internet of obscene, offensive or prohibited material inclusive of indecent exposure & p*rnography.