Examples of Cyber Loss

• Business Interruption - crippled computer systems, a downed website or abrupt data loss can produce a spiral effect of lost revenue to limit your ability to meet payroll and other expenses. Business Interruption forces you to suspend normal operations until everything is fixed back to normal. A normal insurance policy protects you from Business Interruption if you building burns down. Cyber Insurance protects you from the same thing, but in a digital sense.

• Notification Costs - these expenses mount quickly. As the laws regarding data breach change and develop, legal obligations for businesses are increasing. In the event of cyber breach, you may be required to inform customers and the public that their information is at risk. This can get very expense. Payment for call centers, drafting written alerts and press releases, printing, postage, advertisements/ publications to inform them about the breach. Cyber insurance will cover these expenses, so you do not have to shoulder them yourself.

• Credit Protection - in a cyber information breach, your company will be financially liable for the credit monitoring services that each of your customers will require.

• Crisis Management - fees for public relations to reestablish your name and credibility.

• Cyber Extortion - this is when a when a hacker holds your information hostage. Ransom money has run into the millions in some cases.

• Legal Fees - what you pay in the face of lawsuits. Because your company had a duty to secure customer information, you could face lawsuits for the breach of this duty, resulting in hefty legal fees. Insurance companies are not only well equipped with lawyers who specialize in dealing with lawsuits of this type, they are able to settle claims out of court to minimize the losses you face.

• Forensics Costs - what you Because there was a breach of your security system, your company will now have to pay for a digital forensics analysis to determine how the breach occurred, and new security systems to guard against future instances will have to be installed

• During this whole process, your business's day-to-day operations will be interrupted while security breach issues are cleaned up

• Lost Time = Lost Revenues - self explanatory. During this whole process, your business' day-to-day operations will be interrupted while security breaches are cleaned up.