How many of you have received that oh so tempting unknown email just begging you to open it? Ok I know I have and God knows I’ve probably had my fair share of information stolen but Cyber Theft Insurance Claims? Really?
A new world of insurance claims is on the horizon, according to the 2009 report from the Internet Crime Complaint Center. An estimated $294.6 million was lost due to cyber crimes involving the infamous email fraud, theft of trade secrets, computer hacking, and extortion.
Since the advent of this report cyber theft has grown in just three years to an annual $400 million a year criminal business. All of which created a market for the insurance companies to provide insurance policies covering businesses who use email, have networked PCs, a website, or private customer data in their systems. Use of spy ware, fire walls, virus protection, anti-spam systems, and prudent procedures to protect passwords are not fool proof to a determined hacker or a disgruntled employee.
Realizing the severity of this form of criminal behavior and the fact that large company losses can have a detrimental effect on our economy and infrastructure. Congress enacted the “Identity Theft and Restoration Act” on May 16, 2008, which provided criminal penalties related to this form of activity and further defined the aspects of cyber theft to include new crimes, forfeiture and restitution clauses and although are severe they have not served as a deterrent to the criminal mind.
When protection systems fail, cyber insurance kicks in triggering coverage for costs related to cleaning up after a worm or hacker attack, and restoring infected files, as well as business income loss during the period of restoration. Hiring an Accredited Licensed Public Adjuster is highly recommended as insurance claims of this nature become even more complicated when theft of non tangible products are involved causing business losses being calculated by minutes and hours. Handling a claim like this on your own can not only be confusing and time consuming but also can cost you thousands or even millions if you don’t have the knowledge and understanding of the many different provisions and stipulations in your policy.
In future articles I will discuss the types of coverage available from such companies as AIG’s netAdvantage Policy, CHUBBS SafetyNet and CyberSecurity Policy and INSUREtrust Atlanta, all in an effort to raise the level of awareness for the policy holder.
To learn more call 1-866-450-8520. Here at RHI Claims Specialist, Inc. our experienced staff are ready to assist you with any questions you may have regarding your policy or claim.