Insurance companies are now coming forward to cover ransomware related cyber attacks. And the credit goes fully to broad thinking of the insurance providers who now offering services as per demand.
We all know that from past couple of years, ransomware attacks have increased on public and private companies- all thanks to the era of digitalization. But as ransom demands are usually low, they fail to fall under policy retentions.
“But now, the thinking of most providers has changed as this is an area where the role of insurance has increased”, said Meredith Schnur, the Senior Vice President and Professional Risk National Practice leader for Wells Fargo Insurance Services, USA.
Schnur adds that in addition to the coverage, the costs incurred for business interruption and other ransom policies are also being included by providers like Wells Fargo.
Historically, ransomware attacks were either not included in the coverage or only a part of it was covered. But now, the thinking of the providers has changed to such an extent that they are willing to offer full coverage without any limits and are also ready to cover the financial disturbances which occur after the cyber attack.
However, everything depends on the policy language which has to be reviewed and talked by the policy broker.
Sometimes, most victims do not inform the insurer as the ransom was low. But this can turn into a serious blunder, said Roberta Anderson, a partner at K&L Gates LLP in Pittsburg.
Anderson adds that as soon as the company discovers that it is a victim of malware, it has to notify its cyber insurance carrier at the earliest, irrespective of the ransom which is being demanded by the hackers. This is to avoid any future argument with the insurer if the claim becomes larger in the future.
Thus, all this boils down to prove one point and that is insurance providers seem happy to cover the costs incurred during a ransomware attacks.
But remember, all depends on the premium you are paying to the insurer and that too after a lock-in period.
So, be cautious guys while taking the insurance policy which covers malware attacks such as ransomware.