If your company falls under the healthcare, retail, nonprofit, or financial services sectors, there are two things you should know.

First, we thank you for your work on the frontlines in helping communities get back up on their feet. 

Secondly, we have to warn you - your company is likely a big target for ransomware. 

Ransomware was the cause of almost 25% of the total global cyber attacks in 2020. And the numbers (and costs) are only rising. December 2019 was the pivotal month for cyber security. As business shifted online due to the pandemic, the U.S. suffered multiple devastating ransomware attacks that affected over 900 government agencies, educational institutions, and healthcare providers, costing the country over $7.5 billion.

Small businesses need to take notice of these figures too. Cyber attacks are no longer just a talking point for large organizations. Small enterprises can be big targets for cybercrime, especially since COVID restrictions forced us all to shift gears into the virtual world of e-commerce. Any amount of business done online can expose your company to cyber risks, be it accepting payments, selling products electronically, or even simply storing important stakeholder information in an online database.  

So how can you ramp up your company's cyber security measures? A great first step is to scan your current or prospective cyber insurance policies for coverage that actually improves your company's ability to survive a cyberattack. Ransomware attacks can trigger a bunch of helpful coverages within a cyber policy, including:

1. Data recovery coverage - Ransomware attacks can result in businesses losing access to their data temporarily or permanently. Getting that data back can be COSTLY. Targeted companies would need to either possess several data backups, decrypt stolen or locked data, and perhaps even recreate data manually - all of which can break your bank. Insurance policies can cover these data restoration costs as well as the fees paid to external experts.
2. Breach coverage - Data breaches occur when your cyber security measures fail against hackers who end up stealing or blocking your access to your company's data. Responding to a data breach and investigating potential threats are covered by cyber insurance policies, thankfully! Coverage can include the costs of notifying the public, securing information, and privacy liability risks associated with exposed sensitive data.
3. Business and dependent business interruption coverage - Ransomware attacks can cause businesses to suffer around 23 days of downtime. This means no business, no sales, and no income for almost a whole month. Outages like these can run your business to the ground without adequate business interruption coverage. Further, suppliers and technology providers can become targets of ransomware attacks in the form of a virtual siege. For example, suppose your website or networks are down because of an attack on your web developer or managed service provider. Dependent business interruption coverage can cover these supply chain risks that stem from relying on an ecosystem.

Contact a friendly professional to learn more about cyber insurance solutions that match your company's needs.