As organizations look to recover from the disruption caused by Friday’s massive global ransomware cyberattack, the value of cyber insurance, and other cybersecurity tools, just multiplied exponentially.
Security researchers at Kaspersky Lab recorded more than 45,000 attacks in 74 countries including the UK, Russia, Ukraine, India, China and Italy, the Guardian reports.
The UK’s National Health Service, French car manufacturer Renault, and Spain’s telecommunications giant Telefonica were among those hit by the so-called WannaCry ransomware, which locks up computer systems until the victims pay a ransom.
Cyber risk modeling firm Cyence estimates the average individual ransom cost from the attacks at $300, and the total economic costs from interruption to business at $4 billion, according to this Reuters report.
Kevin Kalinich, global head of Aon’s cyber risk practice, told Reuters:
“If you’re a hospital that turned away patients, if you’re a global delivery company that can’t send a package, or a telecom company in Spain, Russia or China, the financial statement impact from the business interruption is much larger than the $300 ransomware.”
Insurance coverage for ransomware (see earlier post), and other forms of extortion, is available under cyber insurance policies, or other types of policies that specifically cover cyber extortion.
An insured’s ransom payment following an attack is typically covered, subject to individual policy terms and conditions, according to this I.I.I. white paper.
Cyber policies also provide coverage for the costs of forensic investigation, restoring lost or corrupted data, legal expenses and business interruption.
Here are some of the considerations that go into the decision to purchase coverage.