Cyber Insurance Simplified

What is Cyber Insurance / What Does it Cover:

Cyber liability insurance protects organizations from third-party lawsuits relating to electronic activities, such as ransomware, phishing scams, data breaches, etc. It also provides many recovery benefits, supporting data restoration and reimbursement for income lost and payroll spent.

Cyber liability insurance covers:

• Loss or damage to electronic data
• Loss of income or extra expenses
• Cyber extortion losses
• Notification costs
• Reputational damage (i.e., Crisis Management)

Cyber Stats:

• 83% of organizations have experienced at least one data breach in the past year.
• 60% of organizations’ breaches have increased prices passed on to clients.
• 45% of data breaches were cloud-based.

Claim Examples:

• Cyber Extortion Threat

  A US-based information technology company, ‘Merica, contracted with an overseas software vendor, Internacional. Internacional left universal “administrator” defaults installed on ‘Merica’s server, and a “Hacker for Hire” was paid $20,000 to exploit such a vulnerability. The hacker advised if the requested payment was not made, he would post the records of millions of registered users on a blog available for all to see. The extortion expenses and extortion monies are expected to exceed $2,000,000.

• Malicious Code

  An intern released a computer worm directing infected computers to launch a denial of service attack against a regional computer consulting and application outsourcing firm. The infection caused an 18-hour shutdown of the entity’s computer systems. The computer consulting and application outsourcing firm incurred extensive costs and expenses to repair and restore their system and business interruption expenses, totaling approximately $875,000.

• Stolen Confidential Data

  A SaaS platform, SaaSyAttitude, stored credit and debit card account numbers, names, addresses, and telephone numbers that were stolen. In total, over 365,000 customers’ records were exposed. The organization settled with the state attorney general and is now compelled to provide free credit monitoring, credit restoration to customers that were victims of identity fraud, and reimbursement to customers for direct losses that resulted from the data breach. The organization must revamp its security policies, implement technical safeguards, and conduct random compliance audits.

• Data breach cost

  According to IBM’s Cost of a Data Breach 2022 report, the average total cost of a data breach globally has increased from $3.86 million in 2020 to $4.35 million in 2022, a 12.7% leap. The price tag skyrockets to $5.57 million for organizations with high levels of compliance failures. In the US alone, the cost of a data breach is the highest of any country, averaging $9.44 million.

  Source: IBM (https://www.ibm.com/security/data-breach)

• Ransomware:

  The average cost of a ransomware attack is $4.54 million, not including the ransom fee. Unfortunately, the average ransomware fee has jumped to $1.8 million, and a whopping 40% of ransomware victims end up paying the fee. These attacks unfold in many ways, with phishing playing a part in roughly 21% of all ransomware attacks. As a result, CEO impersonation is on the rise, where bad actors pretend to be leaders by tricking employees into releasing confidential information via spear-phishing emails. CEO is now a $12 billion scam in the US.

Why Founder Shield:

Founder Shield is a risk management partner for high-growth companies, striving to create the most seamless, intuitive, and responsive insurance-purchasing experience powered by proprietary technology and insurance products

• Client-Focused & Tech Enabled

  • Streamlined online application, carving away the minutes-to-completion time.
  • Expert guidance from risk management specialists
  • NPS score of 70+

• Bespoke Cyber Liability Coverage

  • Full market access to all cyber liability carriers to maximum quoting reach.
  • Tailored to your industry and designed to fit your unique needs

How it Works

Finding insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined & intuitive as possible.

1. Get a quote

   Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

2. Pair with a specialist

   No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

3. Stay one step ahead

   To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.
   Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.