Clema Risk Solutions Clema Risk Solutions
Get a Quote
  • Business Insurance
    • Business Interruption Insurance
    • Business Owner’s Policy
    • Cargo Insurance
    • Commercial General Liability Insurance
    • Credit Insurance
    • Cyber Insurance
    • Directors and Officers Liability Insurance
    • Employee Compensation Insurance
    • Medical Malpractice Insurance
    • Product Liability Insurance
    • Professional Indemnity Insurance
    • Property Damage
    • Public Liability Insurance
  • Employee Benefits
    • Accidental Death and Dismemberment Insurance
    • Critical Illness Insurance
    • International Health Insurance
    • Term Life Insurance
    • Travel Insurance
  • Industry Solutions
    • Asset Management and Funds Insurance
    • Online Seller’s Insurance
    • Schools and Educational Institutions’ Insurance
    • Veterinary Clinic Insurance
  • About Us
  • Resources
  • Contact Us
  • Cargo Insurance
Clema Risk Solutions Clema Risk Solutions
  • Business Insurance
    • Business Interruption Insurance
    • Business Owner’s Policy
    • Cargo Insurance
    • Commercial General Liability Insurance
    • Cyber Insurance
    • Directors and Officers Liability Insurance
    • Employee’s Compensation Insurance
    • Medical Malpractice Insurance
    • Product Liability Insurance
    • Professional Indemnity Insurance
    • Property Damage
    • Public Liability Insurance
  • Employee Benefits
    • Accidental Death and Dismemberment Insurance
    • Critical Illness Insurance
    • International Health Insurance
    • Term Life Insurance
    • Travel Insurance
  • Industry Solutions
    • Asset Management and Funds Insurance
    • Online Seller’s Insurance
    • Schools and Educational Institutions’ Insurance
    • Veterinary Clinic Insurance
  • About Us
  • Resources
  • Contact Us
  • Get a quote
Apr 08
Case study how does cyber insurance work

Case study: how does cyber insurance work?

In collaboration with GM Consultant, we present a case study to help you understand how cyber insurance works. As a consulting firm, GM Consultant has developed a specific expertise in cyber risks and cyber claims. Its managing director for the region, Timothee Grange, has offered to share some information about a cyber loss that has hit an Engineering Consulting firm, based in Hong Kong, a few weeks ago.

1. What is cyber insurance?

Cyber insurance protects businesses from risks relating to information technology infrastructures. One section includes first-party coverage against losses such as data destruction, extortion, theft, hacking. Whereas, the other includes third-party coverage indemnifying companies for losses caused to others following a data breach.

Once a cyber-attack has occurred, the key objective of the cyber insurance is to assist the insured to restart its activity as soon as possible. The insurance company will reimburse key expenses such as business interruption, forensics services, data or software recovery fees.

2. Case study

A Hong Kong based Engineering Consulting firm was the victim of a ransomware attack using their Remote Desktop Protocol as a vector to get in the Company’s network. As a result of the attack, all files were encrypted on both production and back-up servers. The Company took swift action by calling their Insurers’ hotline and got immediate support from pre-approved Incident Response Specialists: GM Consultant.

In the first stage, the GM Consultant team provided key mitigation measures to identify and contain the ransomware and secure data that has not yet being compromised. In the second stage, technical investigations were initiated to assess the vector used by hackers and the scope of the attack (number of impacted machines, type of data, risk of personal/confidential data being disclosed…).

The Incident Response Team then considered several options to recover the data including rebuilding data from scratch, decrypting Virtual Machines back-ups or initiating discussions with hackers to acquire decryption key.

In the end, the above steps, completed together with the cyber insurance company, have led to a full recovery of the data within 3 weeks.

All incident response services, forensics investigations, data recovery and business interruption related costs (around 150,000 HKD) were covered by the Company’s Insurance Policy.

More than the involved costs, it is important to notice that one of the added values of the cyber insurance is the access to immediate professional expertise. Without such insurance, the engineering firm would have probably lost several vital days before deciding which IT forensics to appoint in this situation. In consequence, the impact of the cyber-attack would have been considerably more damaging.

3. Why small and medium size businesses should buy cyber insurance?

In the same way that small and medium sized businesses are contracting fire insurance to protect their physical assets, the need to buy cyber insurance is an essential one, especially in this day and age where clients are more savvy about the need for cyber security.

First, cyber insurance will offer protection for data, IT network and internet web site. Second, cyber insurance is a great risk management tool. It includes several added value services such as incident response planning, risk assessment, breach response services or training.

Looking for cyber insurance

If you would like to speak to a business insurance expert in order to understand how cyber insurance works, please don’t hesitate to send us an email with your contact details. 

You can also visit our website to find out about the other insurance services we offer.

  • Facebook
  • Twitter
  • Tumblr
  • Pinterest
  • Google+
  • LinkedIn
  • E-Mail

Comments are closed.

Recent posts

  • The 3 levels of liability insurance for technology companies
  • Can I insure my cryptocurrencies?
  • How do I calculate the value of my contents and stocks for my business insurance in Hong Kong?
  • Does your employees’ compensation insurance covers your company when your employees are working from home?
  • Do Startups need business insurance?

Categories

  • Business Insurance (42)
  • Business insurance package (3)
  • Business Interruption (3)
  • Business Owner's Policy (2)
  • Credit insurance (1)
  • Cyber Insurance (5)
  • Directors and Officers Liability Insurance (3)
  • Employee Benefits (6)
  • Employer's Liability (4)
  • Health Insurance (2)
  • Marine Cargo Insurance (1)
  • Online Sellers Insurance (2)
  • Product Liability (4)
  • Professional Indemnity (6)
  • Property damage Insurance (1)
  • Public Liability (5)
  • Service Insurance (2)
  • Term Life Insurance (2)
  • Travel Insurance (1)
  • Uncategorized (1)
  • Business Insurance
  • Employee Benefits
  • About Us
  • Resources
  • Manage your Policy
  • Contact Us
  • Privacy Policy

Subscribe to our newsletter

Offices

Singapore
883 North Bridge road,
#0604 Softbank,
Singapore 198785
T: +65.6493.2428
hello@clema-rs.com
www.clema-rs.com

Shanghai
Room 608, No.1900 Tian Shan Road, Changning District, Shanghai,China
T: +86.21.3251.5535
hello@clema-rs.com
www.clema-rs.cn

 

Hong Kong
99 Hennessy Road
Bayfield Building, Room 2301, 23F
Wanchai HK
T: +852.5508.8017
hello.hk@clema-rs.com
www.clema-rs.com.hk

France
4 Rue des Orphelines
77160 Provins,
France
hello@clema-rs.com

Linkedin
Made by Them You & Me
Thank you

Thank you for your interest in Clema Risk Solutions. We will respond to your inquiry in the next 24hrs.

What are you looking for?

Business Insurance OR  Employee benefits

Enter your details to proceed

 

Enter your details to proceed

 

 

Enter your details to proceed

 

You are a resident in:

Singapore

You need insurance for

An Individual OR  A Group