What Happens After Submitting a Cyber Claim
After submitting the claim notice, which should be done immediately, an acknowledgement with instructions will be given from a person at the insurance company called a Claims Specialist. Usually, there will be two other parties involved, a law firm or breach counsel and a forensic company.
Usually, the insurer or the breach counsel will act as a breach coach to coordinate the process of adjudication. These functions could be carried out by the insurer or separate third parties. Functionally, the lawyers are there to determine regulatory compliance as well as private liability exposures and recommend measures to mitigate those liabilities.
The forensics will determine what happened and how it happened with recommendations to prevent further damage. They will also prescribe measures to reduce exposures going forward. This part can get very technical and might require an IT firm if internal resources are not available to implement security improvements.
The claimant will be instructed by the insurer or law firm to complete an IC-3 form that describes the event. This goes to the FBI/Dept. of Justice. It is just a reporting form. Unless the event is of major proportions, don’t expect any action from government sources. Finally, insurer will also ask for copies of the claimant’s other policies like crime, E & O, or business owners’ to see if any of those would apply.
These are the basics. What happens specifically will depend on the type and extent of the breach event.
Alexander J. Wayne
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