Cyber Claims Examples to Talk About With Your Clients

Cyber Insurance covers risks related to data breaches, network security failures, and other cyber-related incidents. These policies help businesses recover from the financial losses and reputational damage that can result from cyber attacks.

Looking at cyber crime’s scope and at some of the most common Cyber claims examples with your business clients can help you underscore for them Cyber Insurance’s importance.

The Staggering Scope of Cyber Crime

Two ProWriters agents smile as they prepare Cyber Insurance policies for clients.Experts expect the global Cyber Insurance market, valued at $16.66 billion (U.S.) in 2023, to be worth $120.47 billion by 2032—an increase greater than 623%.

What’s driving this growth? Cyber attacks have become more frequent, more sophisticated, and more costly to those they hit.

Today’s threat actors are well-financed, often by governments. And the expansion of remote work (accelerated by the COVID-19 pandemic), increasing number of on-premise and SaaS (Software as a Service) apps organizations use, and rise of the IoT (Internet of Things) all give cyber criminals a larger “attack surface” to target.

In the U.S. alone, the costs associated with cyber crime reached an estimated $320 billion by 2023. Experts say those costs will reach $1.28 trillion by 2028.

Cyber Liability Claims Examples to Consider

What does cyber crime’s sprawling reach mean for your business clients? To answer that question, consider some common Cyber claims examples.


In a ransomware attack, cyber criminals gain unauthorized access to a computer or network, encrypt its files, and then demand a ransom to restore access. The encrypted data may include personal files, financial records, or proprietary information.

Attackers often use malicious downloads or exploit software vulnerabilities to gain entry. They usually demand payment of ransom in cryptocurrency, to protect their anonymity.

The consequences of not paying the ransom can be severe. And the cost of recovering from a ransomware attack can be exorbitant, encompassing not only the ransom itself but also the expenses of restoring systems, strengthening security measures, and mitigating potential damages.

In 2023, the average cost of a ransomware attack reached a record high of more than $5 million. Small businesses in the U.S. paid a median of more than $16,000 in ransoms.

Claim Example: Hackers hit satellite television provider Dish Network with ransomware, causing network outages and letting hackers extract nearly 300,000 employees’ data. Dish incurred about $30 million in expenses related to the incident, including an unknown amount of ransom to (the hackers claimed) prevent the stolen data from being made public.

Data Breach

A data breach occurs when unauthorized individuals gain access to sensitive information. This access can potentially cause significant harm to businesses and individuals alike.

Such personal information as names, addresses, phone numbers, Social Security numbers, and financial details can be exposed. This exposure can result in identity theft, financial fraud, and reputational damage.

In the case of businesses, confidential company information—trade secrets, intellectual property, and proprietary data—may also be compromised. Severe financial losses, loss of business opportunities, and legal repercussions can follow.

Handling fallout from a data breach can require significant amounts of time and money. Recovery may take years. Sometimes, the damage may prove irreversible.

In 2023, the average cost of a data breach in the U.S. was $9.48 million. Data breaches cost businesses with fewer than 500 employees around $3 million, on average.

Claim Example: Shields Healthcare Group suffered a significant data breach. The incident affected 56 facilities and some 2.3 million clients. Attackers stole extensive amounts of sensitive and confidential patient information, including full names, birthdates, Social Security numbers, diagnoses, and insurance and billing details. Class action lawsuits against Shields allege negligence, breach of contract, invasion of privacy by intrusion, and breach of fiduciary duty.

Social Engineering Fraud

Social engineering fraud manipulates individuals. It exploits their trust and tricks them into providing login credentials, financial details, or personal identification numbers.

Social engineering fraud takes various forms, such as phishing emails, phone scams, or the impersonation of legitimate and trusted individuals and organizations. Perpetrators skillfully use techniques that make it challenging for people to identify or resist their malicious intentions.

Once they have the information they want, criminals may use it to transfer funds out of a business’s accounts into their own or sell the information on the dark web. Social engineering attacks can also damage a company’s reputation, erode trust with customers and partners, and result in legal and regulatory consequences.

Fully 98% of cyber attacks involve social engineering in some way, including 90% of malicious data breaches.

Claim Example: An employee at California property management company Ernst & Haas received an email from a scammer posing as the employee’s superior. It included a fraudulent invoice with details of a third-party account for remittance. Accepting the invoice as authentic, the employee directed Ernst’s bank to wire $200,000 to the account. After the company discovered the truth, it couldn’t recover the transferred funds.

ProWriters Equips You to Sell Cyber More Effectively

Two ProWriters insurance agents happily working from office desks.We trust this overview of some of the most common Cyber claims will help you convince your clients that investing in Cyber Insurance is a proactive step toward protecting themselves.

Cyber Insurance offers a safety net by helping mitigate the financial burden and reputational damage that can follow an incident. Policies typically cover expenses such as legal fees, public relations campaigns, credit monitoring services for affected individuals, and even potential financial losses resulting from business interruption.

For more Cyber claims examples, Cyber Insurance policy samples, and resources to help you sell Cyber, contact ProWriters today. Schedule a demonstration of our Cyber IQ Comparative Rate platform, which helps you research, quote, and sell Cyber policies more efficiently and effectively than ever.