Can You Minimize Ransomware Settlement Exposure with Cyber Insurance?

Nearly anyone can be a victim on the cyber battlefield, including celebrities. The personal data of Madonna, Bruce Springsteen, Lady Gaga, and Elton John was stolen from Grubman Shire Meiselas & Sacks (GSMS), and because GSMS refused to pay the ransom in full, much of the information ended up for sale on the internet. Even though the FBI got involved and GSMS hired private individuals to recover the data, only some of it was reclaimed.

The GSMS attack used what’s referred to as the double extortion method:

  • First, they stole data
  • Then, they threatened to publish the data if GSMS didn’t pay the ransom within a specified time frame

A ransomware attacker can gain access to your system through a number of ways, including guessing an employee’s password, using malware to infiltrate your network, email spoofing, or spear phishing, which is explained in this video by Cisco.

While cyber insurance cannot prevent a ransomware attack, there’s a lot it can do if you find your systems hacked and your data held for ransom. But each attack—and insurance policy—is different. 

Below, we’ll discuss how cyber insurance works, how it can be used to reduce the impact of ransomware settlements, what it covers, and the trends shaping the cyber insurance industry.

What Is Cyber Insurance and Who Needs It?

An organization can obtain cybersecurity insurance, also known as cyber liability insurance or cyber insurance, to help mitigate internet-related risks such as ransomware and other forms of cyberattack. The insurance contract transfers some of the risks to the insurer in return for a monthly or quarterly payment.

Cyber insurance benefits companies that produce, store, and handle electronic data online, such as credit card details, client contact information, and consumer purchases. It can help pay for the costs of reclaiming data in case it gets stolen. Cyber insurance is also an advantage for e-commerce companies because downtime resulting from a breach may result in lost clients and sales. 

Can You Minimize Ransomware Settlement Exposure with Cyber Insurance?

Ransomware attacks are becoming more prevalent. And because no company is too big or small for malicious actors, it’s only a…