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Person sits at desk, head in hand, as

Case study: Consultancy

Ransomware affects client delivery and future income

For service-led businesses, cyber disruption can quickly affect client delivery, billable work and future income.

This anonymised case study is based on an actual cyber claim and shows how a ransomware attack can create financial consequences that continue beyond the first system outage.

It also highlights where cyber insurance can help, from business interruption cover and specialist recovery support to the evidence and claims guidance needed to demonstrate lost income after an incident.

The Cyber incident

This anonymised example illustrates how cyber insurance responded in a particular circumstance. Cover and claim outcomes depend on the individual policy wording and facts of each incident. Limits, sub-limits, exclusions, conditions, excesses and retentions may apply. The example is not a guarantee that another claim would be covered or settled on the same basis.

A consultancy suffered a ransomware attack that encrypted data held on its servers. With access to project files and business-critical information disrupted, the incident had the potential to affect client delivery, billable work and revenue.

The incident was promptly reported to the cyber insurer, which appointed specialists to support the response and assess the claim. The insurer paid approximately £589,700 for business interruption and associated losses. Several months later, the consultancy reported further network outages following a post-incident server migration, estimating an additional £90,000 loss of income during January and February.

What this means for businesses

Ransomware can disrupt access to project files, systems and other information required for client delivery.
Financial effects can continue after the initial systems recovery.
Server migration may cause further instability and operational interruption.
Post-incident outages and their effects on billable work should be recorded carefully.
Timesheets, project records, utilisation data and revenue trends can help substantiate lost income.
Later losses must be reported promptly and clearly linked to the original incident.

For service-led businesses, the impact of a cyber incident can continue after systems appear to be restored. Cyber insurance can help with business interruption losses, specialist recovery support and the evidence needed to demonstrate lost income.

Ready to strengthen your business? Find out more about cyber insurance and how it can help protect your business, or contact the Haven Knox-Johnston Commercial team to discuss the right cover for you.

Call our team of experts on 01905 930 760 today.

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