Cyber Claim Scenario – Employee Error

Cyber Insurance Claim Scenario – Employee Error

(First Party & Third Party Claim)

Cyber Insurer CGU has provided this claims scenario and how there cyber insurance responds to the scenario



A retailer emailed a group of customers to promote a sale with special discounts available to them. The retailer intended to attach a copy of the flyer detailing the discounts but instead attached a copy of a spreadsheet that contained a customer list, including customer names, addresses and credit card information.


The retailer was required to notify all affected customers of the error and offered credit monitoring services.

Several of the affected individuals began legal proceedings against the retailer. The notification and credit monitoring costs totalled $50,000, and the amount to settle the legal proceedings with the retailer’s customers combined with the associated legal costs and expenses totalled $100,000.


CGU Cyber Defence Insurance Policy provides coverage for breach of privacy which includes legal costs, indemnification of third parties and crisis management costs.

Source CGU

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