What is Ransomware?
Ransomware, or sometimes called cyber extortion, is a type of malicious software that can infiltrate computer systems and locks them down. Typically, the data or system is then held hostage by encryption until payments are made or other demands are met.
The goal of the hackers is not to destroy or permanently encrypt the data, but to secure fast payment of the ransom.
The types of Ransomware crimes can be :
- Wannacry Ransomware
- Anti Ransomware
These attacks are on the rise and are considered an escalating threat for the foreseeable future.
Do Business Owners need Ransomware Insurance?
The short answer is, yes! Insurance can provide ample ransomware protection in the event of a ransomware attack. In fact, there are a number of actions that must be taken once your business has experienced a cyber hack. These steps include:
- Notifying customers and clients of the breach (a legal requirement in most states)
- Restoring your business’ website to working order
- Dealing with extortion attempts
- Paying damages to clients, customers, and suppliers who lose out because of your breach
All of these necessary action steps can lead to a hefty, unexpected cost for your business. Not to mention, dealing with the aftermath of a cyber hack could close your business temporarily, which could result in a loss of income.
In addition to having a Ransomware Insurance policy for your business, A cyber liability insurance policy can also help you to cover the expenses associated with a cyber hack. Additionally, some commercial cyber liability policies cover loss of business while your systems are compromised or unavailable. You can even get coverage against inadvertently breaching somebody else’s copyright.
In addition to protecting your business against cyber risks financially, obtaining cyber liability insurance can also help reduce potential risks, because insurers will talk through your current cyber-defenses and identify potential weaknesses that you need to plug.