Ransomware Insurance

A phishing email. An infected website. An ad containing malware. All are portals for ransomware attacks that can dramatically shut down businesses. Our experienced and knowledgeable team can help craft a coverage plan to protect your business interests should the worst happen.

You have a lot to lose, and your business deserves to have protections in place to ensure its long-term growth and success. Your personalized ransomware coverage will allow you the peace of mind to run your business effectively. Learn more about ransomware and cyber insurance below:

• What is ransomware?
• How does ransomware work?
• What does ransomware look like?
• How can a ransomware attack affect businesses?
• Is your company a target if you pay a ransom?
• What are common social engineering techniques?
• How can I protect my business from a ransomware attack?
• What is ransomware insurance?
• What is cyber insurance?
• How is cyber insurance different from other types of coverage?
• How much does cyber insurance cost?
• Get a free quote
• Schedule a consultation

What is Ransomware?

Ransomware is a type of malicious software that blocks access to a computer system or data. The criminals then hold the blocking for ransom, typically via electronic cryptocurrency (such as Bitcoin), to release the access.

Ransomware is typically very difficult for victims to remove without losing personal data, and re-installing the operating system can be necessary. Having backups is important, but security experts advise against paying ransoms since there’s no guarantee that the criminals will actually provide the promised decryption key.

How does ransomware work?

Ransomware is often introduced into a computer system through phishing or fake advertisements. Some ransomware, like Petya and WannaCry, also exploit critical vulnerabilities in the Windows operating system.

Once ransomware is introduced to a computer system, it can work in one of two ways:

• Encrypt files and hold them hostage until the victim pays the ransom.
• Prevent victims from accessing their computer system until they pay the ransom.

What does ransomware look like?

Ransomware may have a variety of appearances depending on how it spreads and its specific method of attack. Here are a few examples:

Locky ransomware

Locky ransomware is distributed via spam email containing an infected file attachment. Once the targeted victim opens the file, Locky encrypts all files and adds the “.locky” extension to the encrypted file’s name. The ransom note instructs victims on how to download and purchase the decryption key and also lists the bitcoin address to send payment.

Locker ransomware

Locker ransomware was distributed through fake advertisements and phishing emails. This ransomware targets both files stored on the computer system and backed up files on cloud storage services. It then displays a ransom note with instructions on how to pay the ransom to unlock the data.

CryptoLocker ransomware

CryptoLocker ransomware was distributed through fake advertisements and phishing emails. This ransomware targeted both files stored on the computer system and backed up files on cloud storage services. CryptoLocker would scramble a file’s contents by replacing it with gibberish and then demand a ransom in order to unscramble the data.

How can a ransomware attack affect my business?

Ransomware attacks are disruptive to any organization, especially without cyber insurance. The attacks can take a variety of forms and affect multiple systems, especially if your business is connected to the internet.

Emotional and psychological impact: Not knowing if or when you’ll be able to access critical files can be extremely stressful. Victims feel at the mercy of the cyber criminals and may go to great lengths to recover their information.

Financial impact: A ransomware attack on a business without cyber insurance can be costly. Businesses may have lost irrecoverable data, which can put them at risk for legal action. Victims also face the costs of hiring an IT staff to remove the ransomware, as well as paying the ransom.

Is your company a target if you pay a ransom?

It depends.

It really depends on how well a company responds to a cybersecurity event. A company that is well prepared and has backups is not likely to be a target in the future because it is not as fruitful for the threat actor. A successful attack is predicated upon vulnerabilities that can be exploited by threat actors. Preparedness and training for companies are key to thwarting attacks that make a company less vulnerable and force the potential threat to move along to another with more, easier vulnerabilities to exploit.

Cybersecurity insurance can help protect businesses from the potentially devastating consequences of a ransomware attack. By having cybersecurity insurance in place, companies can have some peace of mind knowing that they will be financially protected in the event of an attack. In addition, cybersecurity insurance can also help businesses with the recovery process after a ransomware incident. For these reasons, it is important for all companies to consider cybersecurity insurance as part of their overall cybersecurity strategy.

What are common social engineering techniques?

Social engineering refers to techniques used in malicious software (malware) that trick users into installing or giving up their sensitive information. Criminals typically use social engineering tactics in order to gain access to remote computer systems and distribute ransomware.

Some common social engineering tactics include:

Spear phishing

Criminals send official-looking emails, usually with an attachment, to specific individuals in an attempt to gain sensitive information or install malware.

Whaling

The whaling email is the same as a phishing email but targets high-profile users (like executives) and tries to trick them into disclosing sensitive information.

Water holing

Criminals create fake websites that look like legitimate ones and encourage users to key in their sensitive information.

How can I protect my business from a ransomware attack?

In addition to a good cyber security insurance policy, there are some basic steps you can take right now to prevent a ransomware attack:

• Back up your data often
• Use strong passwords and change them regularly
• Keep your anti-virus software up to date
• Avoid opening email attachments or clicking on links unless you are absolutely certain they are safe
• Use virtual private networks (VPNs)

What is ransomware insurance?

Ransomware insurance coverage aids businesses in the event of a ransomware attack by helping to cover associated costs, such as:

• Revenue loss due to downtime
• System repair costs (including lost data)
• Legal fees
• Loss of business reputation
• Fees associated with hiring IT specialists to remove the malware and restore files
• Fees associated with information security audits that are needed due to a ransomware attack
• Any other costs related to business disruption resulting from a ransomware attack, including crisis management and PR.

Our cyber liability insurance policies include ransomware coverage, and it is also possible to add this type of coverage to a business insurance policy.

What is cyber insurance?

Cyber insurance, also known as cybersecurity insurance or cyber liability insurance, is a type of coverage that can help protect businesses. It works by covering the cost of certain expenses and damages caused by cyber-attacks like ransomware.

How is cyber insurance different from other types of coverage?

A standard general liability (GL) insurance policy does not typically cover a business for ransomware and other cyber-attacks. A cyber insurance policy is important because it helps protect against certain expenses and damages caused by ransomware and other cyber threats.

How much does cyber insurance cost?

Cyber insurance premiums vary according to the type of business and its size, as well as other factors such as location and risk exposure. For example, a small retail business in a low-risk area could pay less per year for a basic cyber insurance policy, while a large technology company in a high-risk area could pay a lot more.

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