It’s easy to do a quick online search and find stats on some of the more prominent ransomware attacks and the costs that these companies have incurred from such attacks. But what about the 58% of cyber attack victims that are on the smaller side with fewer than 250 employees?
Ransomware is a looming threat to every business – big or small. Ransomware is a form of malware that encrypts a victim’s files and usually threatens to publish the victim’s data or perpetually block access to it unless a ransom is paid. If this type of cyber attack is something you have ignored in the past, let’s spend a few minutes breaking down the impact it could have on your business.
Here is a great example of a ransomware claim from our partners at Chubb…
A professional services firm experienced a ransomware attack that encrypted several files on its servers. A ransom of approximately $10,000 was initially demanded. We were promptly notified of the event through our cyber incident response hotline and an incident response coach and a forensic firm that specialized in ransomware were retained from our cyber panel. After consulting with these experts, the Insured decided to pay the ransom. Upon payment of the ransom, the Insured was able to begin the decryption process. Following an investigation by a forensic firm, it was determined that no personally identifiable information was compromised as a result of the attack. As a result of the ransomware attack, the Insured incurred losses of approximately $100,000, which was comprised of $15,000 for the incident response coach, $75,000 for the forensic firm and $10,000 for the ransom payment.
On the surface, you may see a $10,000 demand, and think, while a nuisance, this will not cripple my business. However, when you take into account the hidden first-party expenses of the incident response coach and an investigation by a forensic firm, it can quickly catapult costs up to $100,000 or more. Can your business sustain a loss like this that can occur in the blink of an eye? Or in reality… a click of the mouse?
If you are backed by a Chubb cyber insurance policy, you have access to a cadre of post-incident services and even an incident response coach. You will have access to an easy to use app on your phone, and someone available to answer your call 24/7. Don’t ignore the this virtual risk, a well written cyber insurance policy with an experienced carrier like Chubb takes the fear away. Whether it develops into a claim or not, you will have immediate access to an expert coach, at no out of pocket cost.
Interested in learning more about your potential exposures to a cyber attack? Questions about cyber coverage in general? Contact us using the form below.
Consultant | Business Insurance
Matt is a Business Insurance Consultant at RogersGray Insurance. He specializes in Cyber Liability Insurance and works as an adviser to his clients, helping them design a risk management strategy that aligns with their own unique situation. He has 8 years experience working with emerging and middle-market companies that have sophisticated liability insurance needs. Matt also enjoys spending time with his wife and two children, and is passionate about saltwater fishing! You can connect with him on LinkedIn or by email