The online retail company had a cyber insurance policy and was able to recover the following costs:
- Recovery Costs:
–Increased cost of working required to get website functioning properly—$18,000
–Costs to subcontract with external service provider. ——————————$23,000
- Business Interruption:
–Lost sales and revenue from website downtime. ————————————$142,500
- Incident Response Expenses:
–IT forensics firm ————————————————————————————$22,000
–Legal consultation fees —————————————————————————$15,000
–Incident Response Manager fees ————————————————————$6,000
Total Cost: $216,000
- Have a business continuity plan that ensures critical business applications, systems, and activities do not rely on one critical IT provider.
- Have quality standards in place that third party suppliers must meet to reduce supply chain attacks. According to a survey conducted in 2018 by the Ponemon Institute, 56 % of organizations have had a breach that was caused by one of their vendors. Hackers will find the weakest link
- Invest in a Cyber Liability policy. A cyber policy pays for the costs to fix the problem and the loss of profits from the system down time. It gives you access to an incident response team to immediately respond to the attack and a team of consultants and lawyers to help deal with any data breach issues and potential damage to your reputation.