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Loss scenarios from internal cyber threats

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Companies must remain vigilant about how their business would be affected if they were impacted by a cyber incident.

This list of loss scenarios from internal Cyber threats explains the potential impact on a client’s business and describes how Chubb’s Incident Response Platform helped contain the Cyber threat:

*All currencies indicated are in USD


Scenario: Employee error

A Recruiter for a healthcare organisation accidentally attached the wrong file when sending an email to four job applicants. The file included HR demographic data consisting of 43,000 former employee names, addresses, and national ID numbers.

The insured telephoned the Chubb Incident Response Hotline for assistance and an Incident Response Manager was assigned. Chubb brought in Legal counsel to manage regulatory implications.


Potential impact


mismanagement of personal and/or corporate confidential information, violation of company privacy policy:

  • Defence expenses arising from regulatory investigation - $73,800
  • Defence and settlement costs for claims employees that had identity stolen. - $184,400


  • Incident Response Manager Fees - $5,100
  • Notification of affected individuals - $3,700
  • Identity theft monitoring services for affected individuals - $20,700
  • Legal consultation fees. - $18,400


Total cost: $306,100



It is important to understand that cyber is not only related to technological incidents. As innocent as it may seem, human error can be very costly, and it occurs more frequently than expected.

Many of the claims Chubb see stem from very simple employee errors.


Scenario: Disparagement via email

An employee for a consultancy company sent an internal email containing negative comments regarding a service provider. The email was forwarded to others within the organisation and eventually was sent externally. The email was seen by the service provider and a defamation lawsuit was brought against the consultancy company for harming the service provider’s reputation.


Potential impact


third party claims arising from the Insured’s internet media activities. Wrongful Acts include product defamation, disparagement, trade libel, false light, plagiarism, and more:

  • Defence and settlement costs for claims from service provider. - $18,400


  • Crisis communication services - $7,400
  • Public relations expert fees to minimise reputational impact - $5,900
  • Incident Response Manager fees. - $2,200


Total Cost: $33,900



Due to the sensitivity of such a claim and the potential damage to a client’s reputation, it’s important for companies act quickly to mitigate any potential loss or damage.

By ringing the Chubb Incident Response Hotline we can ensure the correct specialists such as PR consultants are appointed to work with the client and communicate effectively with the service provider to resolve issues and bring the matter to a conclusion.


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Disclaimer - All contents of this article are intended for general information/guidance purposes only and not intended to be an offer or solicitation of insurance products or personal advice or a recommendation to any individual or business of any product or service. This article should not be relied on for legal advice or policy coverage and cannot be viewed as a substitute to obtaining proper legal or other professional advice, or for reading the policy documents. You should read the policy documents to determine whether any of the insurance product(s) discussed are right for you or your business, noting different limits, exclusions, terms and conditions apply in each country or territory, and not all cover is available in all countries or territories.

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