Forensics Coverage
First-party cyber coverage for hiring digital forensic investigators to determine the cause, scope, and extent of a cyber incident.
What It Is
Forensics coverage pays for the engagement of specialized digital forensic investigators to analyze a cyber incident after it is discovered. The forensic investigation determines how the attacker gained access, what systems and data were compromised, whether data was exfiltrated, whether the attacker still has access, and what remediation steps are needed to secure the environment.
Forensic investigations are typically conducted by firms pre-approved by the cyber carrier, known as panel vendors. These firms hold certifications such as PCI Forensic Investigator (PFI) status, which is required for breaches involving payment card data. Investigation timelines range from two weeks for straightforward incidents to several months for complex, multi-vector attacks.
Costs vary significantly based on the complexity and scope of the incident. A simple single-server compromise might cost $30,000-$75,000 to investigate, while a network-wide intrusion involving dozens of systems can cost $200,000-$500,000 or more. Forensics coverage is usually included within the first-party coverage aggregate, though some policies impose a separate sublimit.
Why It Matters for Brokers
Forensic investigation is the essential first step after any cyber incident because no other coverage can be properly activated until the scope of the breach is understood. Carriers require forensic reports to validate breach notification obligations, ransomware claims, and business interruption losses. Brokers must ensure forensic coverage limits are adequate because an exhausted forensic sublimit can delay the entire incident response process.
Real-World Example
A professional services firm detects unusual outbound data traffic and engages the carrier's approved forensic firm. The investigation reveals a 90-day intrusion during which attackers accessed 28 servers and exfiltrated an estimated 4TB of data. The forensic investigation costs $285,000 over six weeks, including $180,000 for the initial investigation, $65,000 for malware reverse engineering, and $40,000 for a supplemental investigation when new indicators of compromise are found. The policy's $300,000 forensic sublimit is nearly exhausted.
Common Mistakes
- 1Engaging a forensic firm not on the carrier's approved panel, which can result in the carrier refusing to cover the investigation costs.
- 2Failing to preserve digital evidence by rebooting systems or restoring from backups before the forensic investigation begins, potentially voiding coverage.
How brokerageaudit.com Handles This
brokerageaudit.com's Policy Checker identifies forensic coverage limits and panel vendor requirements in uploaded cyber policies. When a client reports an incident, the system immediately surfaces the carrier's panel vendor contact information and the forensic sublimit so the broker can coordinate the response without delays.