This document discusses cyber insurance and its importance for businesses. It outlines several key types of coverage provided by cyber insurance policies, including privacy breach response costs, digital asset restoration costs, business income loss, cyber extortion, and security and privacy liability. It provides examples of how each type of coverage would apply in different cyber incident scenarios a business might face. It emphasizes that the costs of a cyber attack can far outweigh the costs of investing in cybersecurity solutions and cyber insurance.

1. CYBER INSURANCE
THE FINAL PIECE OF THE JIGSAW

2. CYBER INSURANCE PLAYING A VITAL ROLE IN YOUR BUSINESS
PRIVACY BREACH
RESPONSE COSTS
DIGITAL ASSETS
RESTORATION COSTS
BUSINESS
INCOME LOSS
CYBER
EXTORTION
SECURITY &
PRIVACY LIABILITY
FIRST PARTY FIRST PARTY FIRST PARTY FIRST PARTY THIRD PARTY
Coverage for
expenses incurred in
responding to a
Privacy Breach
Costs incurred to
restore corrupted or
damaged Digital
Assets, caused by a
cyber event
Business Income Loss
sustained as a result
of an Interruption in
service arising from a
cyber event
Payment made to
terminate an
Extortion Threat
3rd Party Liability
(Defense Costs &
Damages) for
Network or Offline
Data Breach
Notification, Forensic,
Legal and Public
Relations Costs
Include costs to
minimize any further
damage to Digital
Assets
Include extra
expenses incurred to
minimize interruption
in Service
Includes coverage for
related extortion
expenses such as
reward payment
Includes regulatory
proceedings defense
costs

3. CASE SCENARIO – PRIVACY BREACH RESPONSE
A man sent an email containing spyware to his ex-girlfriend hoping to monitor her
activities. She opened the email on her work computer, and over the course of two
weeks, the spyware emailed the man confidential customers’ data from the work
computer. The business incurred cost such as forensic, notifying and communicating
with the affected customers
Insured will be able to claim under the Privacy Response Cost
The above scenario is meant for illustrative purposes only

4. CASE SCENARIO – DIGITAL ASSET RESTORATION
Hacker introduced a malicious code onto the Company’s network
which resulted in data/software being damaged. The Company
incurred cost in restoring these digital assets to their original state.
The company will be able to claim under the Digital Asset Restoration
The above scenario is meant for illustrative purposes only

5. CASE SCENARIO – BUSINESS INCOME LOSS
A hacker overwhelmed the website through a denial of-service (DDoS)
attack. The DDoS attack interrupted the site's ability to efficiently
conduct its business, caused over $X in lost business income.
The company that owns the website will be able to claim under
Business Interruption Loss
The above scenario is meant for illustrative purposes only

6. CASE SCENARIO – CYBER EXTORTION THREAT
A law firm, held confidential information on many of their clients, as
well as information on merger opportunities. A hacker gained access
to their computer system.
The hacker threatened that unless they are wired $X they would not
only shut down the firm’s computer systems, they would also publish
all the data obtained from the system
The Policy would cover the ransomware payment.
The above scenario is meant for illustrative purposes only

7. CASE SCENARIO – SECURITY & PRIVACY LIABILITIES
A hospital employee gained unauthorized access to confidential
electronic patient records and discussed with coworkers an individual’s
HIV status. The individual sued the hospital for lack of adequate IT
security measures in protecting digital patient records.
A company website has all necessary security measures in place;
however, a virus attacks the email system. A company employee
transmits the virus to customers and the customers, in turn, sue the
company for the cost of “cleaning up” their own computer network.
Both companies will be covered for defence costs/damages awarded.
The above scenarios are meant for illustrative purposes only

8. CYBER SECURITY AS AN INVESTMENT
“ Businesses are encouraged to invest in cybersecurity solutions to
protect themselves, especially since the cost of a cyber-attack can
be far higher than the cost of getting protected in the first place ”
Source: Singapore Computer Emergency Response Team (SingCERT)