Ransomware Insurance Claims on the Rise – Is Your Organization Protected?
Our world has become increasingly digital. It is hard to find a company that does not rely on computers and websites to operate their business. A plethora of data is stored online; some of it includes customers’ private data. Even hospitals have grown increasingly reliant on computer tablets instead of clipboards to take down a patient’s vitals.
With the increase of technology comes a greater risk that an organization will be subjected to a cyber attack of some sort. Ransomware has been making the headlines at an increasing rate. The victim’s computer is infected with malicious software and access is denied until the deal is paid. Many businesses believe that their cyber insurance will cover this type of attack. That is not necessarily the case. At The Nowell Agency, our knowledgeable brokers can review your existing policy and suggest coverages that will help protect your company’s data and reputation.
What is Ransomware Insurance?
A ransomware insurance policy is an important tool in your belt. It can help you protect against hackers, prevent data loss from a security breach, and keep your business going while you recover. These attacks tend to fall under the category of “cyber extortion.” Here are some additional points to keep in mind:
- Data breach versus ransom attack: In the eyes of most insurance companies, a data breach and ransom attack are two different events.
- Strict requirements for claim: First-party coverage depends on what you already have. Some policies offer first-party and third-party coverage together, while others provide third-party coverage only. A company that only has third-party coverage faces a high chance of damages in the event of an attack.
- Cyber extortion costs boil down to similar definitions: The costs associated with an online attack can be summarized as the following:
- A ransom paid or the fair market value of any goods and services demanded
- Reasonable and necessary fees associated with the insurer’s representation to assist the client.
- Customers must show proof of an attack: There are a few key areas that a company must prove to make claims for an attack.
- The company was forced to pay ransom.
- All reasonable efforts were made to ensure the threat was not a hoax but genuine
- At least one executive agreed to pay the required fee.
Protect Your Establishment with the Right Ransomware Insurance
Reduce the effects of a cyber attack when you have the right protection in place. Our experienced, licensed brokers can discuss with you the different types of cyber policies available to keep your business safe and your reputation for handling your customer’s private information intact.