Without cyber insurance, the associated costs of being hacked and dealing with the aftermath can add up very quickly. Having a cyber insurance policy in place would prove invaluable to any company, big or small.

When you think of Vegas, the first things that usually come to mind are the bright lights, the exceptional entertainment, and the flashy casinos – gambling in Vegas is hugely popular, after all! However, one thing nobody should gamble with is cyber exposure.

Two well-known casino companies, MGM Resorts International and Caesars Entertainment, recently made headlines when they fell victim to ransomware attacks earlier this month. After negotiating the ransom down from $30M, Caesars ended up paying a hefty $15M to its hackers (Anthony 2023)!

Caesars opted to pay the ransom in order to get their systems back up and running and to avoid the wider costs to the business. While a giant like Caesars Entertainment has the resources to do this (and is no doubt insured through various measures), the implications of a similar attack on a smaller company could be far more devastating, since the funds to pay a ransom are far less accessible.

In today’s digital age, cyber threats are becoming increasingly common and sophisticated. Ransomware attacks – “cyber intrusions that affect hundreds of companies every year, from healthcare providers to telecom firms” (Siddiqui 2023) – are just one of the ways hackers can leverage their skills. As technology and the internet continue to evolve, so do your levels of risk. The humbling thing is that a cybersecurity breach can happen to anyone.

When a breach does happen, remember, it’s not just your data on the line. A data breach or cyberattack can also lead to financial losses and reputational damage, making it essential for businesses to have cyber insurance. Part of the cover of a good cyber insurance policy will include the facilitation to pay reasonable fees, costs, and expenses incurred to meet, terminate, or mitigate any credible threat of a Business Interruption, Data Liability, or Network Security Event resulting from an actual or attempted extortion by a third party.

It’s vital to safeguard your business against sensitive data breaches and cyber extortion. We have access to a cyber insurance policy that would also provide extended cover after the initial threat has been mitigated by covering reasonable fees, costs, and expenses incurred for:

• Credit Monitoring Costs – monitoring for identity or credit theft, including the purchase of identity theft insurance for a period of twelve months from the date of any Data Liability, Network Security, or Business Interruption Event, or as required by any legislation.
• Notification Costs – notifying any person(s) or legal entity whose data or information has been or may have been lost.
• Forensic Costs – investigating the cause, scope, and extent of any Data Liability, Business Interruption, or Network Security Event.
• Legal Representation Expenses – obtaining legal advice or representation to protect your interests, including the costs associated with the investigation, adjustment, and defense of regulatory proceedings (i.e., if anyone covered under the policy is called to answer for issues arising from a cyber event or accusations of failure, they will have the support and evidence to show where it came from, quantify their exposure, and cover their legal defense costs).

Without cyber insurance, the associated costs of being hacked and dealing with the aftermath can add up very quickly. Having a cyber insurance policy in place would prove invaluable to any company, big or small, by saving the resources that would otherwise be taken away from the day-to-day running of the company if its employees had to undertake any of these things themselves. These policies represent a relatively low cost to businesses.  They also save the potential penalties that could be imposed by a regulator if a company were to not meet the requirements of legislation.

While the events seen in the Vegas hacks are high profile, cyber extortion is not a rare occurrence and hackers often leverage the implications an event would cost their victims. For businesses, the PR side of a cyber event can be devastating. They could potentially lose their client base that has taken years to build, The best thing that Bermudian companies can do for their clients is to ensure their systems are up-to-date and secure and to have a decent cyber insurance policy in place to mitigate their exposure should the worst occur.

Contact us today to discuss your cyber insurance needs so we can work together to protect your business against financial loss and reputational damage.

 

Marie Voysey-Moss

Vice President of Freisenbruch Broking Services

Direct #: (441) 294-4617     Email: mvoysey@fmgroup.bm

 

References:

Anthony, Abigail. 2023. “Caesars Entertainment Pays $15 Million Ransom to Cyber-Hackers After Breach.” National Review, September 19, 2023 https://www.nationalreview.com/news/casino-giant-caesars-pays-15-million-ransom-to-cyber-hackers-after-breach/

Siddiqui, Zeba. 2023. “Hackers who Breached Casino Giants MGM, Caesars Also Hit 3 Other Firms, Okta Says.” Reuters, September 19, 2023. https://www.reuters.com/technology/hackers-who-breached-casino-giants-mgm-caesars-also-hit-3-other-firms-okta-says-2023-09-19/