REVENUE SIZE OF BUSINESSES THAT EXPERIENCE BREACHES:

Nano - Rev (<$50 M)

Micro - Rev ($50 M - 300M)

Small Rev ($300M - $2B)

Mid - Rev ($2B - 10B)

Large Rev ($10B - 100B)

Mega Rev (>$100B)

SECTION A: SYSTEM DAMAGE AND RECTIFICATION COSTS

  • This section addresses coverage for the costs associated with rebuilding or rectifying computer programs, systems or data that can be lost or damaged. Costs can include employing staff to rebuild or recover data and the costs associated with an IT department.
  • Example: A hacker tricks an employee to click on ransomware, encrypting & corrupting certain data files that are essential for day to day business. IT forensic professionals will work around the clock, often times days, to restore the corrupted data or rebuild your systems.

SECTION B: SYSTEM BUSINESS INTERRUPTION

  • This section addresses coverage for the direct loss of profits associated with system’s going offline. This includes additional costs to meet contractual obligations, overtime staffing costs, and IT forensic costs.
  • Example: An employee clicks on ransomware, locking up your systems, taking every employee offline. It takes an IT specialist 3 days to fix the problem and get the systems back up and running again. The system downtime directly corresponds with lost revenue.

SECTION C: CONSEQUENTIAL REPUTATIONAL HARM

  • This section addresses coverage for the loss of current or future customers as a result of a cyber event.
  • Example: Hackers steal sensitive customer information and it surfaces online. Key customers find out about the breach and decide to work with a competitor or cancel a contract, due to a lack of trust.

SECTION D: LOSS ADJUSTMENT COSTS

  • This section addresses coverage for the costs incurred by an independent expert to determine the amount of financial loss following an interruption of business.
  • Example: Forensic accountants must be brought in to determine reasonable business interruption costs based upon projected financials. This is coverage to pay for the forensic accountant’s billable hours.

Source: Net Diligence 2016 Cyber Claims Study

Note: this information is presented for your convenience, but in no way does it alter the actual contract(s) of insurance. For coverage details, please refer to the policy(ies) for actual language. In the event of conflicting statements, the policy conditions supersede this document.