October 2023: Insurance Horror Stories
Double, double toil and bother – spooky season is upon us!
It’s that point of the yr when ghosts, ghouls, and goblins aplenty make an look. But for a lot of enterprise house owners, different frightful issues are fueling their nightmares. Think cyber incidents, the state of startup funding, and authorized battles. Full physique chills.
As any enterprise proprietor is aware of all too effectively, there are many dangers that companies are at the moment going through. After all, it looks as if day by day there may be information of one other cyber assault on a enterprise or public establishment.
Just have a look at a current cybersecurity breach that affected Okta. The id administration firm disclosed that unidentified cybercriminals used stolen credentials to entry shopper information by means of a assist system. While the corporate isn’t a family title, many big-name companies use Okta, together with Zoom and T-Mobile. In the speedy aftermath of exposing the breach, Okta’s market valuation dropped by greater than $2 billion. That’s extra terrifying than any machete-wielding, mask-wearing fictional serial killer.
And then there’s information in regards to the turbulent startup funding surroundings, local weather change points, regulatory compliance – the record goes on. As we stated, step apart ghosts and ghouls as a result of these are the true scares for companies.
Of course, having sufficient insurance coverage protection can go a good distance in offering peace of thoughts for enterprise house owners. But we’d be mendacity if we stated there was no such factor as insurance coverage declare horror tales.
So, within the spirit of this spooky time of yr and to assist your marketing strategy for the long run, we thought we’d delve into some present enterprise dangers and insurance coverage horror tales. We recommend throwing on The Rocky Horror Picture Show soundtrack for full impact.
Let’s get into it.
- What’s Going On?
- Insurance Horror Stories
- What’s New from Embroker
What’s Going On?
MGM faces $100M loss from ransomware assault — TechTarget
A September ransomware assault on MGM Resorts that resulted in stolen private buyer information is anticipated to value the corporate $100 million. Sounds like a company horror story, proper? It might have been lots worse, however MGM executives little doubt had a giant sigh of aid that the corporate stored its insurance coverage updated because the quantity will probably be lined by its cyber insurance coverage coverage.
Venture Slowdown Hits the Earliest Stages of Investing, Signaling Worsening Decline — The Wall Street Journal
The earlier haven of seed-stage investing is hitting a slowdown, signaling each founder’s worst nightmare: a deepening downturn within the startup funding realm.
Senators take up looming insurance coverage disaster as coverage issuers flee Florida and California — CNBC
We’ve all heard in regards to the enhance in climate-related pure disasters, which have introduced devastating circumstances to some components of the nation. Some insurers have left hard-hit areas like Florida and California, making catastrophe restoration more and more difficult (and never within the trick-or-treat sense). While a lot of the main focus has been on how this development will affect householders, there isn’t a doubt that there are additionally penalties for companies in areas closely hit by climate-related occasions.
A brand new fright is coming to gentle for tech and safety professionals. As this text factors out, many are simply beginning to acknowledge the growing menace of voice scammers and voice community assaults.
Okta’s Latest Security Breach Is Haunted by the Ghost of Incidents Past — Wired
So, we already briefly touched on Okta’s newest cybersecurity snafu, however there may be extra to get into. Okta’s cyber incidents and related responses provide useful classes for different corporations. As this text notes, “repeated incidents and the company’s delayed disclosure have security experts calling foul.”
Ransomware Soars as Myriad Efforts to Stop It Fall Short — Bloomberg
Something depraved this comes. Or is already right here. In what might be a shock to nobody, 2023 is outwardly turning right into a horrendous yr for ransomware assaults, and a few cyber consultants at the moment are revisiting the controversial thought of banning ransom funds.
The Restaurant Revolution Has Begun — The New York Times
Most restaurateurs would little doubt welcome a go to from Freddy, Jason, or Michael Myers over going by means of one other international pandemic. So it comes as little shock that many eating places are hitting reset on how they do enterprise after COVID.
Workers coaching AI demand protections from Congress — The Verge
Ahead of a Senate assembly (spooky and horrifying in its personal proper) with synthetic intelligence employees, information employees urged lawmakers to guard their rights and guard towards a “dystopian future” of surveillance and low wages for individuals in command of coaching AI algorithms. “Dystopian future” seems like an ideal costume thought.
The Niche Insurance Policy Behind a Software Company’s Big Legal Payout — The Wall Street Journal
Legal points will preserve any enterprise proprietor or government up at evening. In this case, software program firm Appian, which sued rival Pegasystems over stolen commerce secrets and techniques and was awarded a $2 billion judgment, took out a distinct segment coverage often known as judgment preservation insurance coverage, which protects towards an award being eradicated or diminished through the enchantment course of.
Panera faces lawsuit over ‘Charged Lemonade’ vitality drink after 21-year-old’s demise — CNN
This is a heartbreaking and distressing state of affairs for all concerned. A wrongful demise swimsuit was filed towards Panera Bread alleging {that a} 21-year-old girl with a coronary heart situation died after consuming a high-caffeine drink on the restaurant that she could have thought was an everyday lemonade.
What to know as IRS kicks off withdrawal choice for pandemic-era small enterprise tax credit score — CNBC
Just listening to point out of the IRS is probably going sufficient to make shivers run down your backbone. Sure, it’s Halloween, however tax time is the true spooky season for a lot of. And to assist some enterprise house owners keep away from a horror story at tax time, the IRS has introduced a particular withdrawal course of for small companies that wrongly claimed a pandemic-era tax break, permitting them to repair errors earlier than the IRS catches them. (Cue screams of terror.)
Meta sued by 42 attorneys basic alleging Facebook, Instagram options are addictive and goal children — CNBC
Few issues are scarier lately than the period of time we spend on social media. Those cat movies are exhausting to go up. Now, a gaggle of attorneys basic is suing Meta over claims the options on Facebook and Instagram are addictive and aimed toward children and youth.
Cyber Risk: The Call is Coming from Inside the House
A menace actor has breached your regulation agency’s system and has been watching the e-mail visitors of one among your companions. When the companion is about to transmit the checking account data of a shopper to acquire settlement funds from opposing counsel, the menace actor jumps in and responds, taking up the tone and appearing as if they’re the companion and offering fraudulent checking account data to opposing counsel, who then wires the settlement funds to stated account. By the time the events uncover this, the financial institution is unable to cease the wire or get well the funds! Gasp!
Errors & Omissions: The Ransomware Wolf
The Managing Partner of your agency receives a ransomware demand from a menace actor who has infiltrated and locked you out of your agency’s system the place shopper recordsdata are maintained. The menace actor has obtained shopper recordsdata containing private data, together with tax returns and monetary statements, and has despatched you screenshots of the identical. They have demanded the Bitcoin equal to $1M for the encryption key to unlock the techniques and forestall them from publicly posting the confidential shopper data they’ve obtained! Spooky!
Directors & Officers: A Telltale Startup
After a collection of disagreements in regards to the administration of the ABC Company, one of many founding Directors resigned and instantly began a brand new agency. His former employer at ABC Company has sued his new agency, alleging that the Director took sure proprietary software program and licenses with him, unfair competitors, and trademark infringement.
Employment Practices Liability: A.I. Robot
For effectivity and financial causes, your organization started using AI this yr to type by means of resumes submitted for open positions. However, ten months later, you obtain a Class Action lawsuit filed by a gaggle of particular person candidates who allege they have been discriminated towards based mostly on their race and/or gender within the resume choice and hiring course of. Upon investigation, you uncover that the AI expertise has been routinely finding out resumes of females and people of various backgrounds, regardless of many, if not all, of those candidates being certified for the place they utilized for.
What’s New at Embroker
Events, Stories, and More
Our 2023 Cyber Risk Index Report is now obtainable. Based on a survey of greater than 500 startup founders, the report seems to be on the cybersecurity panorama, rising threats, and what companies can do to organize. Interested in studying about how investor curiosity in cybersecurity has modified, what new protections what you are promoting wants, and if AI is the subsequent huge menace? Then take a look at this report for a great deal of perception about what the long run holds.
Security and Compliance: How to Protect Your Organization
Do you realize the business laws, legal guidelines, and obligations what you are promoting should observe relating to cyber protections? How are you able to mitigate dangers whereas additionally ensuring what you are promoting stays compliant? To assist kick off Cybersecurity Awareness Month, Mike Malestsky, Embroker’s AVP of Insurance Products, and Davison Paull, General Counsel at Dashlane, mentioned these matters and extra throughout a webinar in the beginning of October. Missed the webinar? Fear not; you may watch it on demand right here.
Aiming for Privacy and Cyber Stewardship
Embroker CIO David Derigiotis was a speaker at Bloomberg Law’s 2023 In-House Forum, Unlocking the Power of Data: Aiming for Privacy and Cyber Stewardship, held on September 20. The discussion board tackled two traits heading in the direction of a collision. On one hand, corporations want an growing quantity of information and analytical instruments to stay aggressive. However, the necessity for privateness frameworks and the drive to scale back information utilization to lower cyber danger and privateness litigation are rising. If you couldn’t tune in for this extremely informative discussion board, you may nonetheless catch the replay.