Hackers breached the security measures, gaining access to sensitive client information, including names, email addresses, physical addresses, and even credit card information. Johnathan’s clients' trust was shattered, and his business faced potential legal consequences.
Fortunately, Johnathan secured a Cyber policy when he opened the shop. He immediately called his insurance company and was able to supply them with information about the breach, including what kind of data may have been stolen, the date and time of the breach and what steps have already been taken to remedy the breach.
A claims handler was assigned to the breach, and they recruited a team of cyber specialist to help investigate the breach as well as identify any weak points in Johnathan’s system to avoid future risks.
After the investigation was complete, it was determined that the breach fell well within the terms of Johnathan’s cyber policy. The policy helped covered the costs of the breach including alerting customers, legal expenses and data recovery.
Without a cyber policy, Johnathan would have been responsible for all the costs out of pocket. Additionally, he would not have had the help of a specialized cyber team to aid with data recovery and identifying the weak spots in his network.
For more information, contact the Victor Small Business team at info.smallbusiness@victorinsurance.com.
* The claims scenario is strictly documented for illustrative purposes only and provides an example of what a policy could cover. It is intended to provide a general overview of the program described. Please remember only the insurance policy can give actual terms, coverage, amounts, conditions and exclusions. Program availability and coverage are subject to individual underwriting criteria.
