PHILADELPHIA – Business Interruption claims can add substantial costs to cyber incidents and take time to reconcile, insurance and technology experts say.
Carefully crafted policy wordings and prudent response and restoration decisions can help mitigate the costs, they said last week at the 2024 NetDiligence annual cyber summit in Philadelphia.
In 2023, the average cyber claim involving business interruption was 270% more than one that did not include lost income claims. In addition, the five-year average cost of a claim with a business interruption element was over 450% higher than a claim without those losses, according to the 2024 NetDiligence Cyber Claims Study.
The study was based on an analysis of about 10,500 claims between 2019 and 2023, with 98% of those claims submitted by small and medium-sized enterprises.
Cyber-related business interruption losses occur when an organization experiences an event such as a ransomware attack that wholly or partly disables its operations or when an entity a business relies on experiences an incident causing that business to experience a loss, known as contingent business interruption, said Julia Verdi, San Francisco-based manager,…
