Erin County Medical Center (ECMC) was attacked by ransomware on April 9th of this year. And the hospital was on the verge of experiencing a $10 million loss from the attack. But was saved in a timely manner by a single Cyber Insurance Policy.
As per the details available to or Cybersecurity Insiders, the hospital chose to up its policy coverage early this year, based on the recommendations of a new policy broker. After reviewing the policy’s insurance coverage, the authorities of the healthcare chose to pay a higher premium which could eventually cover the hospital from any kind of losses ranging from $3 million to $10 million.
Unfortunately, Cyber crooks launched a ransomware cyber attack locking down the computer network of the healthcare and demanding $30,000 as ransom. The ECMC authorities decided not to pay the ransom and chose to move on with a business continuity plan with the available backups. Also, they choose to replace all the locked systems with new ones and related software.
It is estimated that over $10 million was already spent by ECMC on fixing this attack. Roughly half of them went to improve the computer hardware and software and other quarter went to pay the cybersecurity experts involved in neutralizing the attack. Another quarter was spent on the staff who worked overtime to nullify the impact of business interruption to the maximum.
So, as a result of all these expenses, the company was on verge of experiencing a huge financial loss in this year-end.
But a cyber insurance cover has saved them from experiencing a financial crisis as all of the above-said expenses will be covered by the insurer. Though the insured will have to shell out the expenses on an initial note, all those expenses will be reimbursed by the insurer by early next year.
Therefore, for all those who still think “What’s the use of a cyber insurance policy” here’s a story which will enlighten you with the facts happening in the cyber world.
Note- The intention of this article is to not promote cyber insurance. But to create an awareness among SMBs that there are ways to recuperate from cyber attacks- especially from Ransomware attack.