Global rise in ransomware attacks spikes demand for cybersecurity insurance

Leading insurance firms report sharp uptick in demand for business protection amid increasing risk

LOS ANGELES, CALIFORNIA (JULY 6, 2021) — Ransomware attacks are on the rise across the globe as businesses scramble to increase their cybersecurity protections. California-based Vanasek Insurance is among the nation’s leading experts in business protection and cybersecurity insurance seeing a sharp uptick in the demand for protection against online criminals from businesses of all sizes.

“This week, the Ransomware attack on Kaseya business software exposed an unprecedented challenge for small businesses across the U.S.,” said Antontette Vanasek, Founder and CEO of Vanasek Insurance. “Over 1500 businesses were paralyzed by the largest-ever ransomware attack, small and medium sized businesses being the hardest hit in the incident,” she said.

Unlike major multi-national corporations, small and medium-sized businesses are most frequently unequipped to deal with cybersecurity attacks. “Woefully, small businesses are at greatest risk of being compromised and at the same time the least likely to recover from a cybersecurity attack,” she said.

In a ransomware attack, hackers can quite literally take your business for ransom. By gaining access to your business systems and files, they can lock you out of your business, replicate the files, steal personal, customer and financial information or do other irreversible damage to your business, customer relationships and reputation.

In many cases, businesses are unable to pay the ransom – which can soar into the many millions of dollars – forcing a company to fold in its wake. Even in a situation where your information is privately stored and encrypted in specialized business software – such as in the Kaseya case – hackers can still gain access to company information. In this case, Vanasek says it is imperative that businesses plan ahead for what might be an inevitable aspect of doing business online in the digital age.

“We are seeking skyrocketing demand for cybersecurity insurance as incidents like the Kaseya breach become more common,” she said. “No business wants to be in a position where they have to inform their clientele that their private information or their money is at risk,” Vanasek said. “Cybersecurity insurance protects a business against potential losses at the hand of ransomware, hackers or worse,” she said.
Vanasek says that every business should seek cybersecurity insurance before its too late.

“Hackers are getting more and more sophisticated,” she said. “If you use a computer to do business, you are at risk,” Vanasek said.