23 Jan Cyber Security Insurance

Cyber Security Insurance – Are you protected?

In light of recent world events, cyber attacks are more prevalent than ever. We urge you to consider the devastating effects of what a cyber attack can do to you and your family.

We offer comprehensive insurance that provides coverage and services for computer attacks, cyber extortion, and online fraud that can happen with smartphones, computers, and other home devices. 

What does a Cyber Attack look like?

Cyber attacks methods evolve quickly, but here are the most common types. 

• Malware – Malicious software that can infect your computers and servers. 
• Viruses – Harmful programs sent give criminals access to your system. 
• Phishing – Malware or used to collect sensitive information. 
• Ransomware – Malware prohibits you from accessing your system until a ransom is paid. 

The method attackers use changes and evolved quickly and with the speed of technological advances. It is best to keep yourself informed on the most updated techniques by utilizing online search engines. 

What coverage options are available?

• Cyber attack coverage: pays to recover data and restore systems that have been lost or damaged after an attack involving malware or unauthorized use of owned or leased covered devices and connected home devices. Covered devices include computers, security monitoring systems, smartphones, smart appliances, tablets, thermostats, and Wi-Fi-enabled devices.
• Cyber extortion coverage: provides payments and professional assistance in responding to demands based on a credible threat to damage, disable, deny access to or disseminate content from devices, systems, or data, including ransomware attacks.
• Online fraud coverage: resulting in a direct financial loss, including counterfeit currency, forgery, illegal bank, credit card transfers, and phishing schemes.

Real Client’s Claim Stories

• Cyber Attack: An insured opened a file in an email he received and the email unleashed a virus. The virus affected his computer, forcing the insured to hire an outside expert to reformat the hard drive, reinstall the operating system and restore data from a backup. Paid Loss after Deductible: $1,200.

• Cyber Extortion: The insured received a ransom email on his computer after he noticed that his files were locked. The email informed him that the files were encrypted and to obtain the decryption key he would need to pay $2,000. If the insured failed to pay within three days, the price would go up to $3,000. After that, his decryption key would be destroyed and any chance of accessing his files would be lost forever. After consulting with an expert and approval by the insurance company, the insured decided to pay the ransom. Paid Loss after Deductible: $1,500.

• Fraud: The insured received an email that appeared to be from his grandson. It said that he had been in a car accident and was in trouble. He was possibly facing criminal charges and needed money for a lawyer. Within 20 minutes, the insured received another email, this time from someone identifying himself as his grandson’s lawyer. He gave a rundown of the situation, including an accident report and the costs to cover the damage. According to the email, the injured individual agreed to accept $5,000 to cover her costs. The grandfather was told that the victim would sign a release as soon as that amount was wired and the insured’s grandson would walk away with a clean record. The money was sent as instructed. The next morning, the grandfather received another email asking for additional money. The insured called his grandson and learned that none of this actually happened; he had been defrauded. Paid Loss after Deductible: $4,500.

• Data Breach: The insured volunteers at her children’s school. One of her responsibilities is to keep the teachers aware of students’ birthdays and their lunch accounts. The lunch account information contains credit card numbers and other personal information. She keeps track of all this information on a spreadsheet stored on her tablet. She does not secure the tablet with a password so the critical data is not encrypted. While on a field trip, she lost the tablet. After consulting with her lawyer, the insured learns that she must notify people that their personal information was compromised. Paid Loss after Deductible: $4,200.

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