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case study

Former Contractor Disrupts Operation After Stealing Devices

Coalition CaseStudy-Hero-Healthcare DeviceTheft

Industry

Healthcare

Background

  • Employees: 1 - 25

  • Coverages: Breach Response, Business Interruption & Extra Expenses

Case Study

Hours after a healthcare company terminated a contractor, employees found themselves locked out of the network. The business suspected that the former contractor had taken devices that were critical to the infrastructure of its network and quickly contacted Coalition to help resolve the issue.

We connected the company with breach counsel, and Coalition Incident Response1 (CIR) launched a forensic investigation. CIR verified that the company’s suspicions were correct and that the former contractor was responsible for the security failure. Our team attempted to contact the former contractor about returning the stolen devices, but he did not respond.

Ultimately, CIR determined the best recovery option was restoration. The company purchased new hardware and worked with a managed service provider (MSP) to install the new devices and upload missing data to help the company resume operations.

The healthcare company claimed it lost more than $3 million in revenue during its downtime but was only able to provide proof of loss for $8,000. After a lengthy discussion, we came to an agreement of $25,000 to settle the business interruption costs.

Breach Response2 covered the cost of CIR forensics investigation and claims counsel fees. Business Interruption and Extra Expenses covered a portion of payroll and lost revenue during the security failure, as well as the costs of replacing stolen hardware and the MSP’s work on restoring the systems. After the healthcare company paid its $5,000 self-insured retention, its policy covered the remaining $204,000.

1. Coalition Incident Response services provided through Coalition’s affiliate are offered to policyholders as an option via our incident response firm panel.

2. The claim scenarios described here are intended to show the types of situations that may result in claims. These scenarios should not be compared to any other claim. Whether or to what extent a particular loss is covered depends on the facts and circumstances of the loss, the terms and conditions of the policy as issued and applicable law.