Client discovered that certain information about its customers was being stolen after buying products via its website. The client believed it had limited its exposure by using a 3rd party service to process any sensitive information, but hackers identified a vulnerability in the client’s site to intercept customer information before it reached the processor.
The company had to shut down its website, conduct a forensic review of its network, and determine the severity of the incident. The company also had to notify affected customers, provide credit monitoring, and manage the reputational impact to its brand.
Based on RBN’s recommendation, client had purchased Cyber Liability Insurance, which covered the costs of the forensic review, notification and credit monitoring for affected customers, and crisis management PR services. Additionally, the client had Business Income insurance under a separate policy that replaced lost income due to the incapacity of its website.
While effective cybersecurity practices can significantly reduce the risk of loss, it is virtually impossible for a business – especially a business that transacts online – to eliminate cybersecurity risk. Purchasing Cyber coverage to protect your digital property and that of your customers is essential for most businesses, and we recommend it as a staple coverage.