Is Cyberinsurance a Vital Protection Against Ransomware?
In recent years, the frequency and sophistication of ransomware attacks have continued to escalate. In many cases, those attacks have piled up significant costs for their victims, and not just from the ransom payment. Extended downtime after an attack, expensive recovery efforts and reputational damage all hurt an organization’s profits after a breach.
“The actual cost of a ransomware attack extends far beyond the ransom payment — it can add up to be 7 times the ransom demand,” notes NetApp in a blog post.
“As far as overall costs go, experts estimate that the ransom payment adds up to only about 15 percent of the total cost of the ransomware attack,” the post continues. “And the real stinger in all of it is that only 1 in 7 organizations who pay a ransom actually get their data back.”
Some Vendors Offer Warranties Along with Cyber Insurance Policies
Cyber insurance is a growing trend and, in many cases, an operational requirement. However, some organizations don’t have the resources to self-insure. For smaller organizations, there are still ways to reduce the cost of cyber insurance premiums. Roberts notes that some third-party security providers, such as Rubrik, offer warranties that insurance companies recognize as extra assurance of an organization’s data protection strategy.
In April, Rubrik made two groundbreaking announcements about its ransomware warranties. In a press release published during this year’s RSA Conference in San Francisco, Rubrik said “With the rapid growth of cyberattacks, organizations share the same concern: ‘If we get hit by ransomware, can we recover?’” The company’s response was to increase the value of warranty it offers as part of its cyber insurance policies.
“Rubrik is confident in our data security solution and committed to a shared responsibility between customers and software vendors,” the release notes. “As such, we are putting more skin in the game by doubling our warranty to $10 million.”
In addition, Rubrik issued a separate press release to announce its partnership with Zscaler to offer a double extortion ransomware solution. “Rubrik’s…
