Ransomware / Ransomware Attack
What Is a Ransomware Attack?
Ransomware is a type of malware that locks or encrypts your systems, then demands payment to unlock them. Essentially, it’s when hackers hold your online operations hostage.
How Does a Ransomware Attack Work?
Ransomware starts like a small bug, eventually locking up your business system so you’re unable to use it.
- It starts with a click, through a phishing email or a bad link
- The malware installs quietly, spreading across your files and network
- Your data gets encrypted (and sometimes copied) for extra leverage
- You’re locked out, and a ransom note appears demanding payment (often in cryptocurrency)
- You recover by restoring clean backups or using decryption tools with professional help
How Can a Ransomware Attack Hurt My Small Business?
A ransomware attack hurts your small business by holding your system hostage! Here’s how it can affect you:
- Operations stop: No access to your systems means no sales or appointments
- Recovery costs add up: Cleanup, restoration, and tech time
- Trust takes a hit: Customers worry about their data
- Regulatory actions: Possible fines or required notifications
- Broken contracts: Missed obligations can mean lost clients or venues
- Future costs rise: Premiums or stricter security requirements
Will General Liability Cover the Cost of Ransomware Attacks?
No, general liability insurance is meant to cover physical injury and property damage — not digital ambushes on your business. The good news? There’s coverage specifically designed for attacks like these: cyber liability insurance.
What Type of Insurance Covers Ransomware Attacks?
Cyber liability insurance is made for digital threats like ransomware attacks. It can cover:
- The cost to investigate the attack
- Restoring your data
- Lost income while your system is locked
- Ransom payments (sometimes)
Your small business makes big moves online. It’s crucial to protect both your and your customers’ data with ransomware insurance to keep your business moving forward.
Have questions about cyber insurance for ransomware? Talk to our licensed (non-commissioned!) agents. We’d love to help protect your business from digital risks — contact us.
Additional Resources
- Guide to Cyber Liability Insurance (aka Cyber Insurance)
- Webinar: Why Small Businesses Need Cyber Liability Insurance
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