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:
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.
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:
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 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 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 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.
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.
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.
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:
Criminals send official-looking emails, usually with an attachment, to specific individuals in an attempt to gain sensitive information or install malware.
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.
Criminals create fake websites that look like legitimate ones and encourage users to key in their sensitive information.
In addition to a good cyber security insurance policy, there are some basic steps you can take right now to prevent a ransomware attack:
Ransomware insurance coverage aids businesses in the event of a ransomware attack by helping to cover associated costs, such as:
Our cyber liability insurance policies include ransomware coverage, and it is also possible to add this type of coverage to a business insurance policy.
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.
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.
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.
Take our free cyber risk assessment and see what coverage plan is right for you.
You can give us a call or schedule a free, no-obligation consultation for your business. Book an appointment with a cyber liability insurance expert at your earliest convenience now.
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