Cyber Terrorism: How Insurance Can Help Mitigate Damages

This entry is part of 24 in the series Data Security

What is Cyber Terrorism?

Cyber terrorism is a politically-motivated attack against computers and data. These attacks are intended to be disruptive and advance the attackers’ political or religious stance. Acts of cyber terrorism result in a total or partial interruption of a computer system. Unlike cyber extortion, the hacker isn’t asking for any sort of ransom in cyber terrorism situations.

Examples of Cyber Terrorism

  • Sophisticated network attacks to gain access to sensitive data and high-value business information
  • Viruses and worms that are maliciously designed to disrupt, damage and attack an electronic infrastructure
  • Hacks to collect personally-identifiable information which can be used to steal identities

Cyber Terrorism Scenario

In this video scenario, the computer system at a franchise headquarters is hacked and the hard drive is wiped clean. In a communication following this cyberattack, the hacker indicates that she intruded on the system in protest of corporate America’s inability to keep computer systems secure. No ransom demand is made. A forensic investigation is initiated to determine if any client information was breached in the attack. Legal counsel is retained to assist in reporting the matter to the FBI.

The information technology fees and legal expenses in this cyber terrorism scenario would be covered by Society’s cyber liability insurance (cyber terrorism insurance).

What is Cyber Terrorism Insurance?

Cyber terrorism insurance provides coverage for loss of business income and interruption expenses incurred as a direct result of an interruption of your computer system due to an act of cyber terrorism. This includes both first party losses and third party liability claims, breach response services, and claims handling backed by a team of legal, forensic and crisis management experts.

This is just one of the many data security and privacy coverages included in Society’s leading-edge cyber liability insurance. Our expert claims personnel have a wealth of experience handling thousands of cyber claims and helping businesses each step of the way.

Contact your local Society agent to learn more about how cyber terrorism insurance can protect your business.

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