Here are some examples of cyber liability claims:*

Cyber Liability – “Personal Records Disclosure”

Case: A customer purchased a used computer that used to belong to a pharmacy. However, during inspection, the computer had contained old information of the pharmacy’s patients, such as prescription records, names, addresses, social security numbers, and lists of medication.

Loss: The cost of notifying parties that were affected per state law totaled
almost $110,000. Two different parties filed separate lawsuits, one who claims they lost their job from the result of the negligence for damages more than $200,000 and another from claiming that their identity was compromised and the damages resulted in over $100,00.

Cyber Liability – “Data Security”

Case: A part-time employee at a hospital gained access to confidential documents stored on a computer that belonged to a patient and brought it up to co-workers regarding the patient’s private medical records. The patient found out and sued the hospital for negligence of protecting their privacy and records.

Loss: The hospital was held liable for $250,000 and an additional
$85,000 was spent on defense.

Cyber Liability – “Missing Data”

Case: A laptop that belonged to an employee containing confidential and sensitive financial information of clients was lost.

Loss: GLB regulatory investigation ongoing. The organization spent over $700,000 in defense of lawsuits by multiple clients who were affected from the loss of their private information.

Technology E&O – “Internet Content”

Case: An organization with information of thousands of patients that posted the information online accidentally faces a class action suit for emotional distress of these patients.

Loss: The class action suit seeks damages in excess of $10 million
and the federal government has notified the system to prepare for
an investigation under HIPAA.

Technology E&O – “Service Interruption”

Case: A data processor for an organization malfunctions and causes business to be inactive for hours, causing a heavy loss of financial revenue.

Loss: Costs of defense and resolutions ended up being more than $1,000,000.

– Source: AmWINSGroup Inc. Claims Examples: Cyber Liability

*This information is a guide only, it is not legal or financial advice. Always do due diligence to ensure you are not breaking the law.