Small and medium sized organizations are victims of employee errors and hacker attacks, and need Cyber Risk/Data Breach Insurance. Larger companies and the government are not the only targets, and smaller companies are perceived as less secure.
Here are some incidents:
Actuary: A hacker found his way into the network and proceeded to erase the entire server. While some backups existed, the cost to replicate the data exceeded $10,000.
Accountant: A hacker found his way into an accountant’s system and stole tax filing information, but the accountant did not know his system had been breached. The hacker used the information to file bogus tax returns for a number of the accountant’s clients, and these returns generated tax refunds to the hacker. The breach was discovered when the accountant’s clients were blocked from filing their correct returns by the IRS (because the IRS already had a return on file).
Ag Products Company: Cyber thieves accessed the bank accounts of an ag products company in Oregon and stole approximately $223,000. The thieves initiated three wire transfers to the Ukraine on three consecutive days, each just under the Company’s per day wire limit of $75,000. Neither the company nor the Company’s bank noticed anything for almost two weeks, and the money is gone.
Classic Employee Error: An employee lost a laptop while traveling. The laptop contained names, addresses, birth dates and social security numbers for company employees. The company reported the breach to their state and, as required, notified all employees and paid for one year of credit report monitoring to mitigate future issues.
Cyber risk insurance is an essential coverage and is not expensive. It is not difficult to explain to potential clients, although the details can be complex. As a wholesale broker, we provide cyber risk insurance to all types of organizations through retail insurance agents and brokers.