Cyber Loss Extra Expenses– Potential Insurance Claim

Quality documentation and forensic analysis is the cornerstone to effectuate a positive result on a cyber claim. Most cyber risk policies include coverage for business interruption or loss of income and extra expenses associated with a breach, which typically can make-up some of the more significant costs. When a cyber business interruption loss occurs, it is the responsibility of the risk manager or policyholder to lead the development and presentation of losses caused by the event. Immediately after a loss, significant attention, leadership and data analysis are required to fully document a claim.

Keep in mind that a complex loss will be evaluated for insurance purposes or for a general audit, therefore it is essential to quickly establish a claim validation and presentation process to capture and document all loss-related costs.

Potential Extra Expenses:

Replacement of destroyed servers, processors and other hardware
Cost of purchase or replacement of software
Cost of integrating new software into legacy systems
Cost of recreating lost data and customized programming
Costs of forensics to determine point of failure in the systems
Extra costs of operating at hot/warm site
Public relations expenses
Crisis management expenses, rapid response security professionals
Cost for notifying customers impacted by the breach and or the subsequent potential issues
Increased costs to source alternative product
Additional cost shipping of the alternative product
Inspection of alternative product
Government regulations issues
Spoilage of WIP inventory
Employee overtime
Forensic investigators and accountants

Nothing Found