SEARCH
SEARCH
Person sits at desk, head in hand, as
Person sits at desk, head in hand, as

Case study: Equipment wholesaler

Two incidents show the value of resilience and verification

A single business can face more than one type of cyber risk.

This anonymised case study is based on actual cyber claims and shows how ransomware and impersonation fraud can affect both day-to-day operations and financial resilience.

It also highlights where cyber insurance can help, from incident response and forensic IT support to cover for eligible losses, while showing the importance of backups, accurate security controls and robust customer verification processes.

The Cyber incidents

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.

Incident one:
ransomware disrupts systems

A specialist equipment wholesaler suffered a ransomware attack that disrupted its systems and temporarily prevented staff from working. Because data could be restored from backups, the operational impact was limited to several days, although some work was lost.

The forensic investigation found that multi-factor authentication was not enabled on certain critical applications, despite policy information suggesting otherwise. MFA was later installed, and the investigation could not conclusively link this weakness to the attack.

The claim included business interruption, third-party remediation, forensic investigation and legal support. The final settled total was approximately £80,500, including £30,286 paid directly to the business.

What this means for businesses

Reliable, tested backups can substantially reduce disruption and data loss.
Multi-factor authentication should be implemented on all critical systems.
Cyber-security declarations must accurately reflect the controls in place.
Prompt notification allows insurers’ specialists to become involved quickly.
Response and professional costs can exceed the direct business-interruption loss.
Operational recovery may take days, but claim assessment and settlement can take considerably longer.

Incident two:
impersonation fraud leads to lost goods

The same wholesaler later suffered an impersonation fraud. Fraudsters posed as a recognised organisation and placed several orders for equipment, which was delivered to various addresses before the deception was discovered during payment chasing.

The goods had a sales value of approximately £38,900 and a net cost of approximately £24,500. Insurers examined the company’s customer-verification and approval processes, particularly whether transactions above specified thresholds required approval from more than one employee.

Cover was ultimately accepted based on the net cost of the goods. After the policy retention, the business received approximately £23,000.

What this means for businesses

A professional-looking email and a familiar customer name are not sufficient verification.
New accounts and unusual orders should be independently confirmed using trusted contact details.
Email domains, delivery addresses and changes in purchasing behaviour should be checked carefully.
Approval controls should apply to transfers of goods as well as payments.
Thresholds should consider the total order or customer exposure - not only individual invoices.
Clear records of approvals and verification checks can be critical when establishing policy coverage.

A single business can face more than one type of cyber event. Strong backups, accurate security declarations, clear approval controls and independent verification all matter. Cyber insurance can support both the recovery response and the financial loss where the policy responds.

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.

Why choose us?

Expert navigation of the marine trade market

Well-established relationships with specialist insurers means we can swiftly source the right protection for your business.

A longstanding
experienced crew

With 20 years in Marine Trade insurance, we understand the industry’s nuance and provide guidance, efficiency and support.

On board with
every business

We have the flexibility and scope to offer the highest standards of cover for marine businesses and associations of all shapes and sizes.

Call us today on
01905 930 760
Enquire here
Request a Quote

Marine trade insurance, expertly navigated

Useful Links

©2026 Howden UK Brokers LimitedManage Cookie Preferences

Haven Knox-Johnston Commercial is a trading name of Howden UK Brokers Limited, which is authorised and regulated by the Financial Conduct Authority No. 307663. Registered in England and Wales under company registration number 02831010. Registered Office: One Creechurch Place, London EC3A 5AF. Calls may be monitored and recorded for quality assurance purposes

Instagram
LinkedIn