Ransomware Insurance
Cyber Insurance for Ransomware Attacks
Not all cyber insurance is ransomware insurance. Does your cyber insurance policy cover ransomware attacks?
$4.5 million
is the average cost of a ransomware attack (not including the cost of the ransom itself), according to IBM Security.
We're a group of cybersecurity and insurance experts helping you figure out how best to protect your business, your family and yourself from ransomware attacks.
75%
of cyber insurance claims in the U.S. involved ransomware attacks, according to AM Best.
Frequently Asked Questions
FAQs
Here are some frequently asked questions related to ransomware and cyber insurance.
What is ransomware?
Ransomware is a type of malicious software that locks down computers or encrypts files. Attackers typically demand payment from their victims for the removal of the malware or the decryption of the encrypted files.
Ransomware is most frequently distributed by phishing attacks, where the attacker tricks its victims into clicking on a malicious link. Ransoms are typically paid in cryptocurrencies and there’s no guarantee that paying them will restore your access.
What is cyber extortion?
Cyber extortion is a type of cyber attack that demands payments in exchange for not releasing the data that the attacker has stolen. Cyber extortion is very similar to ransomware in that the end goal of both attacks seeks access to a company’s system with the intent of making money off disrupting business operations.
Increasingly, ransomware operators are deploying “double extortion” attacks, where they would first ask for a payment for the decryption of data, then threaten to publish the stolen data unless the victim pays a second time.
Does cyber insurance cover ransomware?
Ransomware protection is often part of a cyber insurance (also called cyber liability insurance) policy, but this is not a standard across the industry. Because ransomware coverage is decided by each cyber insurer, it’s often difficult to know whether you are covered by your existing policy.
What is ransomware insurance?
Ransomware insurance is a type of cyber insurance that specifically covers ransomware-related costs such as ransom payments, business interruption costs, legal consultation and IT cybersecurity support including incident response and digital forensics.
50-75%
of ransomware attack victims are Small Businesses, according to National Association of Insurance Commissioners (NAIC).
What’s the right cyber insurance policy for me?
Since ransomware coverage is not standard across the industry, it’s difficult to know whether your existing policy, or an insurer you’re considering, covers ransomware-related expenses.
Below is a selection of insurers that we've evaluated, offering ransomware insurance for individuals, startups, small businesses, large enterprises, universities and municipalities.
Blink by Chubb
If you’re looking to protect yourself or your family from ransomware attacks, Blink may be the right insurer for you. Blink is part of Chubb, the world's largest publicly traded property and casualty insurer with operations in 54 countries.
- Identity theft
- Fraudulent wire transfer
- Cyber bullying
- Extortion from ransomware
Vouch
If you are running a startup, you should look into Vouch. According to Vouch, its platform is built by founders for founders and only takes a few minutes to activate coverage. Vouch is trusted by the biggest names in the startup world, including the Y Combinator.
- Identity theft
- Forensic analysis
- Breach of systems
- Social engineering
- Electronic funds transfer
Founder Shield
Another good option for startups is Founder Shield, which according to its website, takes the stress out of buying insurance for venture-backed startup companies. Founder Shield says that it protects over 25% of the current venture-backed companies.
- Data loss and damage
- Loss of income or extra expenses
- Cyber extortion losses
- Notification costs
- Reputation damage
Embroker
If you are a small business owner, you need to take a look at Embroker. As one of the leading digital insurance brokerages, Embroker is a well-known brand in the property and casualty insurance market with coverage in all 50 U.S. states.
- Data loss and recovery
- Business interruption and revenue loss due to breach
- Loss of transferred funds
- Computer fraud
- Cyber extortion
CoverHound
If you are looking to purchase a variety of insurance products online including cyber insurance, CoverHound might be the right place to go. As one of the original InsurTech providers, it quickly gives you competitive rates and coverage in all 50 U.S. states.
- Data breach response expenses
- Identity recovery
- Cyber extortion
- Regulatory fines
- Business interruption costs
Coalition
For organizations looking for a more comprehensive cyber insurance offering, Coalition is a good option. Coalition calls itself an Active Insurance company that combines insurance with proactive cybersecurity tools to help businesses manage and mitigate risk.
- Stolen funds
- Lost business income
- Breach response costs
- Computer replacement
- Cyber extortion
Cowbell
Cowbell's Adaptive Cyber Insurance harnesses technology and data to provide SMEs (up to $250 million in annual revenue) with advanced warning of cyber risk and customized cyber insurance adaptable to future threats. They even offer premium incentives for policy holders to improve their security posture.
- Data restoration costs
- Business interruption losses
- Extortion and reputational harm
- In-house cyber claims experts
- Risk engineering consultation
- Cybersecurity awareness training
Measured Insurance
Combining cybersecurity and insurance expertise, Measured reassesses your risk every 30 days in a customized security report with personalized protection tips for your business. Services also include post-ransomware and cyber attack support with negotiation experts, legal consultation, and IT help.
- Data breach and fraud
- Identity theft
- Malware and ransomware attacks
- Business interruption and losses
- Customized security report and personalized protection tips
- 24/7 security team support
Get in touch!
We’re here to help individuals, businesses, universities, government agencies, and the cyber insurance and cybersecurity industries address the ransomware epidemic.
If you have any questions or feedback, or would like to partner with us, please reach out.
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