THE ROLE OF YOUR INSURANCE PARTNER IN THE EVENT OF A CYBER INCIDENT BY INSURANCE STRATEGIES, INC. We all have faced this dilemma. I have a small “ding” in my car. Should I file a claim with my insurance company or not? If I file a claim, will I see a significant premium increase at my next renewal? CYBER INSURANCE IS DIFFERENT Let us take a ransomware situation as an example. Your bank receives an email from badguy@yahoo.com. The email states that your bank’s servers have been compromised and encrypted, and unless you pay a $2 million ransom in Bitcoin within 48 hours, private and confidential customer data will be released, and the ransom will double. Under your bank’s cyber insurance policy, this is known as a first-party cyber event (as opposed to a thirdparty event, which means a third party is suing you), and you need to notify your agent and insurer immediately. ENGAGE YOUR CARRIER AND ITS EXPERTS Your insurance company is skilled in dealing with ransomware and cyber breach events and has partnered with vendors with expertise in dealing with your organization’s specific threat. GUEST ARTICLE NOTIFY YOUR CARRIER’S CYBER CLAIMS UNIT Your insurance carrier will have a dedicated cyber claims line, staffed 24/7, to respond to cyber incidents. Be sure your incident response team has access to your carrier’s cyber claims contact information. FIRST STEPS Your carrier will immediately appoint a Breach Counsel or Project Manager to oversee the cyber event. Within a brief time, your Breach Counsel will initiate a scoping call where you will review the extent of the damage against your organization and if data was compromised, where the attack originated, the status of your backups, ransom demands and other factors involved with the appropriate representatives of your organization. Typically, you would want to include your head of IT, one or more key decision-makers such as your bank President, CEO, or COO, and a customer liaison representative. NEXT STEPS After the scoping call, your Breach Counsel will consult with their industry experts. These firms are skilled and experienced in dealing with all types of threat intelligence, including the type your bank is facing. These experts will validate whether the threat is real and determine what diagnostic These experts will validate whether the threat is real and determine what diagnostic or corrective actions need to be implemented. 18 Community Banker
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