Early communication is key to cyber business interruption claims

Business interruption caused by cyber risks can escalate quickly. The faster a policyholder can contact their insurer and mobilise their assistance, the better the policyholder can help protect their organisation and reputation.

It is vital for policyholders to partner with their claims team as soon as they believe there even may have been a business interruption.

The dilemma of delay

Clients can save both time and money when they engage their insurer early in the process and collaborate to implement a loss calculation methodology. In a cyber event, early action is critical and helps ensure the most efficient and positive adjustment.

  • Late notification to their insurer can cause your client’s costs to grow exponentially.
  • Delayed response to a business interruption could allow attackers to infiltrate critical business systems further.
  • Your client’s insurer can connect them early to a specialised team of forensic accountants to support the most efficient and cost-effective claims resolution possible.

Response and recovery

  • At Ironshore, we offer our clients coverage for a potential business interruption loss as well as access to a panel of forensic accountants through our cyber network interruption coverage. We have the capability and expertise to help manage a wide array of cyber claims. Our claims team specialises in handling complex cyber incident response and claim adjusting.
  • Any suspected cyber incident requires a prompt response. When a cyber incident demands fast action, our claims team is ready to support your clients through a business interruption event and get them back to business.

Risk to watch: the rise of ransomware

Ransomware attacks remain the most frequent cause of cyber business interruption.

  • From the start of the pandemic through June 2021, ransomware attacks increased nearly 500 percent.
  • Industry estimates predict cybercrime costs will grow by 15 percent annually to more than $10trn by 2025*.

Traditionally, ransomware is malicious software that encrypts a user’s files, making files impossible to access without a key. The attacker holds the key and demands a ransom to return access to the organisation. Although ransomware has existed for more than two decades, experts say that attacks are becoming more complex and the stakes for organisations more serious.

Prevention is protection

Data Insure, Ironshore’s cyber liability solution, provides critical first- and third-party protection against a variety of network security and privacy exposures due to ransomware, malware, data breaches, social engineering and more.

Learn more about Ironshore’s full range of cyber solutions for your clients here.

* https://techxplore.com/news/2021-06-ransomware-covid-pandemic-internet.html

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