Ransomware is a plague on businesses and insurers. Cyber insurance can provide protection in the event your business falls victim. Though we are not cyber insurers ourselves, we work in the world of cybersecurity. From our experiences, we forecast insurance rates are going up across the board due to ransomware, data breaches, and the hefty payouts that insurers have been forced to make.
Fortunately, none of our clients have fallen victim, but we’ve heard some horror stories. Not only will the crooks encrypt your files, but they’ll also threaten to publish your sensitive data if you don’t pay. Imagine the damage that would do to the reputation of your business.
Data breach example
You may have heard about the ransomware attack on Colonial Pipeline in May 2021. They brought in specialists to examine the evidence to determine what happened, restore normal operations, and secure systems. Often this means replacing entire systems and networks. You can probably infer further, but the setup of networks and systems is arduous, and can be deeply personalized to the specialist.
Recovering from a data breach is an incredibly stressful process that can last weeks or months. We’ve heard that this is particularly disruptive to the people in IT and company management. There is so much stress involved at high stakes on the personal and business level. Some have reported PTSD-like symptoms after the incident is finished. Of course, this is all very expensive – not to mention hefty ransom payments that may be involved. Cyber coverage can help with these costs.
Cyber insurance, though it often needs special attention beyond business insurance, just gives you a net if your company ever experiences a data breach. It is liability coverage that you hope to never need. But if the worst happens, it mitigates the risk.
We’ve noticed insurers becoming much more sophisticated and specific lately – asking lots of tough questions about the security posture of us and our clients. Does your insurance company ask compliance questions? If not, get ready, because they probably will at your next policy renewal, especially if you have cyber coverage. SpireTech strives to ensure that your business keeps with your cyber insurance broker’s requirements.