Cyber Security Evaluation

Cybersecurity Evaluation saves over $1M in Damages

UIC evaluated a retailer of soft goods to determine whether their current cybersecurity insurance policy sufficiently covered their exposure and PCI compliance. We leveraged its cybersecurity checklist to identify program deficiencies and prioritized them by risk.

In addition, we evaluated the company’s risk management program to ascertain that a solid infrastructure, including disaster recovery and data backup, was in place. Once we completed an analysis of the retailer’s environment, we were able to redesign the insurance specification to close the gap without increasing cost through an extensive bidding process.

At a later date, the client’s infrastructure was compromised through a malware (malicious software intended to disrupt operations) intrusion, with the attacker obtaining a significant number of client records. Due to UIC’s suggested policy changes, however, the client had appropriate coverage and ultimately saved more than $1 million in damages.

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What Does UIC Think of Cybersecurity?

Cybersecurity attacks on companies are not only rising in frequency but also in severity of cost. While these risks are becoming inevitable; it’s how these risks are mitigated and transferred that determines the extent of the damage—financial and otherwise. Don’t wait for a breach to occur, preparation and a solid framework can make all the difference with challenges regarding regulatory compliance, insurance, and legal defense matters.

Most large companies continue to strengthen cybersecurity capabilities and security frameworks while small and medium-cap organizations are lagging behind by all indications. UIC believes that mitigating risk is only part of the solution; transferring risk through comprehensive cyber insurance can significantly reduce company risk.