Cyber Insurance

Fraudulent emails were sent to an insured management consultant’s clients, requesting payment to a fraudulent bank account. The management consultant reported the security breach to their insurer’s 24-hour cyber hotline.

The claim was covered by the Cyber Insurance policy’s Response Management Costs section, and a legal firm was appointed to provide privacy advice and manage notifications to the Office of Australian Information Commissioner (OAIC). The legal firm recommended engaging an IT specialist to conduct a forensic investigation into the extent of the email compromise, and they completed dark web monitoring.

The security breach was contained, and third-party claims were resolved. Total costs incurred amounted to $227,506.31, with the management consultant responsible for a $2,500 retention.

The provision of the claims examples are for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Coverage for claims on the policy will be determined by the insurer, not BizCover for Brokers.