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Claims Scenarios

We have 20 years’ experience of handling cyber claims. Here are just a few examples based on actual events to illustrate the CyberEdge response. See the Resources section for more details.


Network Interruption

Ransomware encrypted 3 of the client’s servers and its folders.  The hacker also deleted the back-ups and demanded a ransom to decrypt the system. The client could not deliver shipments, receive materials, make payments or collect receivables.  After 10 days the client paid a BitCoin ransom of €25,000 to restore operations. AIG covered the costs of: the ransom, incident response and the extensive network interruption including increased cost of working and cancelled orders.


Email compromise

A client’s customers received a suspicious email with a PDF invoice from an employee.  In fact the email account had been compromised and the phishing email sent to thousands of addresses. The client proactively warned all contacts of the compromised account to avoid the PDF and changed employee passwords. CyberEdge legal respondents, after consideration of the client’s activities including selling cyber insurance products and reputational considerations, also recommended early ICO notification.


Breached Network

Hackers accessed the clients’ network compromising thousands of devices.   Local regulations prevented the clients’ data from being handled abroad and AIG sourced a local IT forensics team to investigate on-site.  Identification of the compromised devices and network traffic analysis showed how the hackers had gained access to user accounts and the scale of the penetration including confidential tender details and financials.  Analysis was still ongoing over 6 months later with costs running at over $300,000.


Targeted attack

A targeted cyber-attack encrypted all of a large retailer’s files including those on the cloud.  AIG quickly appointed forensic IT to work onsite, non-stop, to secure the system and try to retrieve unencrypted data.  No stock replenishment or online order processing was possible and eventually the client decided to pay the BitCoin ransom which AIG helped source.  Cyberedge covered the costs of manually decrypting each individual file, IT fees and interruption losses until they exceeded the £1m policy limit.

An employee steals the personal information of millions of customers          

CyberEdge response: CyberEdge covers the costs of IT forensic experts to establish what data was stolen from who and the costs of notifying the individuals whose data had been stolen.  It also paid for credit monitoring to make sure the individuals suffered no ongoing losses after the data theft.  It then covered the costs of a legal breach coach to prepare the business for investigation and the costs of representing and defending the business in the ensuing legal action that was brought against them.

An unknown credit card processor puts a department store’s 35,000 cardholders at risk         

CyberEdge response: Calling on its strong supplier relationship network, AIG worked with the insured to retain a top professional to provide notification, replacement credit cards and credit-monitoring services. AIG reimbursed the insured approximately $200,000. AIG is providing legal counsel and closely collaborating with the retailer to explore its right to reimbursement from the credit card company and third-party processor.

A college accidentally sends 80 emails including names and grades of all its students            

CyberEdge response: Working together AIG and the college were able to retrieve 55 of the emails before they were opened.  AIG worked closely with the school’s dean and helped provide notification to the impacted students and retained a supplier to provide credit monitoring.

3 million passwords are hacked from an online service provider and leaked posted online      

CyberEdge response: AIG’s claims team and breach coach worked closely with the insured in resetting the passwords of the individuals and recommended a number of security procedures for users such as changing passwords every few months.  AIG collaborated with the client to email the 3 million impacted customers to advise them of the breach and to provide them with the necessary information on how to contact the insured’s customer care team.