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Cyber Software Insurance
What can happen if you have outdated software?
Imagine this situation: Hackers penetrate a CPA firm’s network from a vulnerability in an outdated software application. 4,000 client names, addresses, emails, bank details and financial records were compromised.
If your business falls victim to cybercrime as a result of outdated software, what measures can be taken to prevent the consequences?
In this “situation,” local authorities received multiple complaints of suspicious activity, leading the rm’s IT department to discover an unauthorized user had accessed the system. Once discovered, they called their insurance carrier who immediately brought in forensic experts to initiate thefirm’s IT recovery plan and notfication program.
POTENTIAL IMPACT
Take a look at the cost breakdown of an incident response:
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Forensic investigation costs to isolate vulnerability, analyze damage, ensure containment and calculate loss $11,850
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Forensic investigation costs to isolate vulnerability, analyze damage, ensure containment and calculate loss $9
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Incident response fees $7,850
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Public relations fees to minimize reputational impact $10,050
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Call center set up and operation to field inquiries $10,200
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Notification Costs $1,865
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Data Recovery (Costs associated with replacing lost or corrupted data) $14,850
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Legal expenses arising from regulatory investigation due to mismanagement of private information $22,175
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Legal expenses and settlement costs for claims $16,100
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Business interruption $39,318
Total: $145,758
RESOLUTION
The business’s cyber policy was triggered, giving them immediate access to response services. The insurance company dispatched a forensic team who quickly isolated the unauthorized user.
A claim was started immediately to help with impending legal, consulting and media costs. The insurance company, IT team and forensic consultants ensured they had up-to-date cyber defenses including firewalls, intrusion detection software, and encrypted databases. Concurrently, officials worked with local media to notify a ffected clients and o ffer credit monitoring services, while the legal team handled the backlash from those a ffected. Finally, the forensic consultants helped develop a new plan that included regular updates, testing, and education of all sta ff to minimize future breaches.
Get the commercial coverage you need
This type of attack can happen to businesses in a multitude of industries such as: Medical Offices, Law Firms, Real Estate Agencies, Restaurants, Logistic Companies, Schools & Universities.
There are a number of software and cyber insurance coverages to help protect against these risks, allowing you to act quickly and identify threats.
Lucky for you, there are always ways to protect and secure the integrity of your company.
This is why Mainline Insurance takes particular care in protecting the assets, reputation, and legacy of our clients.