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.
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, here is an example as to why you would need Ransomware Insurance:
- As a small business owner, Sarah was well aware of the importance of cybersecurity. She had invested in firewalls, antivirus software, and data backup systems to protect her company’s sensitive information from cyber-attacks. One day, Sarah’s worst nightmare came true. She received an email from a group of hackers who had infiltrated her company’s systems and held her data hostage. They demanded a ransom payment of $50,000 for the safe return of her company’s data.
Sarah was devastated. She didn’t have the resources to pay the ransom, but she couldn’t afford to lose her data either. So she started looking for options and discovered ransomware insurance.
Ransomware insurance is a type of cyber insurance that covers losses related to cyber extortion and ransomware attacks. For example, it can cover the cost of ransom payments, legal expenses, and loss of income due to business interruption.
Sarah quickly contacted her insurance provider and explained the situation. They helped her negotiate with the hackers and eventually recovered her data without paying the ransom. In addition, the insurance policy covered all the legal expenses and loss of income she incurred during the process.
After the incident, Sarah realized the importance of having ransomware insurance. It gave her peace of mind knowing that her business was protected against cyber threats and that she had the support she needed in case of an attack.
Let’s discuss your Ransomware insurance.
One of our insurance advisors will reach out to you to review your information and present you with the appropriate ransomware insurance solution. There’s no obligation, just good-old-fashioned advice.