Few companies purchase cyber liability insurance. In fact, 94% of survey respondents do not purchase cyber liability insurance. However, 31% of executives interviewed are concerted about breaches of privacy loss, including customer or employee information.
However, one cannot ignore the increasing complexities with respect to privacy liability and the related costs, should a breach of privacy occur at their organization.
Because this area is so new Chubb will be continuing to monitor how Private Companies manage Cyber Liability their exposures.
Download the entire Canadian results, Chubb Private Company Survey Executive Summary.
Compromised Stolen Laptop
Executive’s laptop was stolen from a corporate vehicle. The laptop contained significant private customer and employee information. Although the file was encrypted, the password protection on the laptop was weak and the personal identification number (PIN) was compromised.
After assessing the nature of the information on the laptop with a forensic expert and outside compliance counsel at a cost of $50,000, the energy company voluntarily notified relevant customers and employees and afforded call center, monitoring, and restoration services, as appropriate. While the additional first-party cost was $100,000, the energy company also incurred $75,000 in expenses responding to a multi-state regulatory investigation.