Many experts in the cyber insurance field state, “It is not if a cyber claim will occur, but when.” Allow CVM Global, through our partnership with the Center of Excellence, to be your agent from the purchase of a policy to claim facilitation with the carrier. Once a breach is discovered, it is urgent to notify the agent/broker and the carrier. Many policies include critical response teams and public relations as part of the claim process. Policies also include reporting deadlines requiring filing within a certain timeframe of the discovery.
After an alleged or actual cyber event is discovered, please do the following:
- Notify the insurer promptly: Many cyber policies have limits on when an incident must be noticed by an insurer (often triggered by the discovery of an incident by an executive or employee). Insurers add these requirements so that their position is not prejudiced by latent reporting. With the time-sensitive nature of cyber claims, this point is critical.
- Engage their broker: If there is a suspected incident, it is important for an insured to discuss with their broker what may be covered under the policy; notify the carrier according to the guidelines of the policy terms and conditions; and work with the breach coach to determine what next steps may be required.
- Detailed documentation: It is very important to keep detailed documentation of the situation – from discovery to the closing of the claim. Take screenshots wherever possible. Crucial facts for business interruption claims include, but are not limited to:
- Who? What? What? When? How? Give full details on the time, date, location, and circumstances that led to the event and stop the event from continuing. Note who reported the incident. Provide the best contacts for the adjuster to visit with.
- Impacted systems and ancillary losses: List systems impacted and estimated cost of time and money to fix them. This may include hardware, software, websites, pertinent documents lost, and the cost to reassemble lost data.
- Effects on the business: How much revenue can be proven lost from the event, if any? Did you have to pay overtime to staff or third-party vendors to get the system running again? Did you have to buy new software or equipment? Did you have to change procedures within the office(s) or dismiss any employees? Increase security at a cost? Was it necessary to move office locations? Was payroll delayed or employee benefits late due to the loss? These are just a small snippet of questions you may find yourself asking as the business owner.
CVM Global has decades of experience in claim assistance. Per the guidelines of our agency license, CVM Global is beholden equally to the insured and the carrier to help a claim run smoothly and fairly for both parties. Please reach out if we can help you obtain an insurance policy before a claim occurs. Typically, insurance cannot be backdated. Even after a claim occurs, once closed, we recommend looking around for a new carrier should you not be satisfied with renewal terms offered. Please contact us if we can be of assistance.
LEGAL DISCLAIMER
The views expressed here do not constitute legal advice. The information contained herein is for general guidance of the matter only, and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has a different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.