Filmmakers, are YOU prepared with cyber insurance if you get hacked?
Source: Royalty-free stock photo ID: 635676176, Shutterstock
Don’t think a cyber hack could happen to your production company? Well, think again! Just look at the below real-life examples of film production company hacks to see how real this threat is:
The Sony Pictures hack (2014)
In 2014, a hacker group (likely sponsored by the North Korean government) leaked a release of confidential data from Sony Pictures, including personal information about employees and their families, information about executive salaries at the company, copies of then-unreleased films, plans for future films, scripts and other information. Several Sony Twitter accounts were also hacked.
The group demanded the cancellation of the release of Sony’s comedy film The Interview (2014) and, indeed, major cinema chains opted not to screen the film in response to these threats.
Although the film eventually did reasonably well through a digital-only release, the cinema chain cancellations amounted to (potentially) millions in lost revenue for Sony. With cyber insurance, the included business interruption coverage could cover lost income and related costs.
If a hacker can breach the defences of a large entertainment company such as Sony Pictures, they can certainly breach a smaller production company, too. Hackers are becoming smarter, making it harder for production companies to defend themselves from a data breach.
The Larson Studios hack (2017)
In 2017, LA-based digital production company Larson Studios was hacked. The hackers apparently purloined 10 episodes of Orange is the New Black, which Larson Studios produces, then demanded ransom to prevent the shows from being released unofficially.
Larson Studios made the difficult decision to wire more than $50,000 USD in extortion money to the hackers. Yet, the unscrupulous hackers still leaked the stolen episodes on a file sharing website more than a month before the show was set to premiere. Cyber insurance would cover payments to those who threaten to disclose sensitive data.
Larson Studios made another expensive decision: to hire private data security experts to find out what happened. With cyber liability insurance, the cost of a forensic investigation is included in the policy.
Cyber hack insurance for filmmakers is designed to protect them from certain losses associated with data breaches and hacks. After a hack, there are costs you may incur, including (but not limited to):
- notifying customers that their information has been stolen
- paying to restore or recover the stolen data
- paying to conduct an investigation to determine what happened
- losing money from business interruption
SO, HOW CAN CYBER INSURANCE HELP FILMMAKERS?
Hack insurance can help with expenses associated with managing a hack, such as incident response and data recovery expenses.
Not only is your work stored on your computer(s), you may also have accounting, employee and/or client personal information on there. If you suffer a hack, your insurance can help you manage the costs associated with the loss. Front Row's cyber hack insurance policy starts at just $300 CAD annually and includes comprehensive cyber coverage with limit options up to $1,000,000.
90% of small businesses in Canada do not have Cyber Insurance: take a few minutes to protect your production company, which has taken you so long to establish.
About: Front Row Insurance Brokers Inc. is an independent insurance broker that provides cyber insurance for a very low cost. Should a claim occur, Front Row works diligently with clients and insurers to expedite payment of claims. Front Row has offices in Vancouver, Toronto, Montreal and Halifax.
DISCLAIMER: Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. Consult the actual policy or your broker for details regarding terms, conditions, coverage, exclusions, products, services and programs which may be available to you. Your eligibility for particular products and services is subject to the final determination of underwriting qualifications and acceptance by the insurance underwriting company providing such products or services. This website does not make any representations that coverage does or does not exist for any particular claim or loss, or type of claim or loss, under any policy. Whether coverage exists or does not exist for any particular claim or loss under any policy depends on the facts and circumstances involved in the claim or loss and all applicable policy wording.
IF YOU ARE A FILMMAKER/FILM PRODUCER/HAVE A PRODUCTION COMPANY, YES, YOU NEED HACK INSURANCE