Cyber insurance and ransomware: A detailed risk management approach

Ransomware remains an ongoing threat to businesses around the world. One report estimates that as many as 4,000 ransomware attacks occur each day globally, and this number will only increase as cybercriminals and their technology become more sophisticated. 

Gilsbar offers cyber insurance that aids ransomware recovery, which has become a modern necessity for businesses in the digital age. Learn how cyber liability insurance fits into a cohesive risk management approach. 

Understanding ransomware risk management for businesses

Ransomware is a type of malware that can enter a company’s network and encrypt essential files. The “ransom” aspect of this cyberattack comes when hackers demand payment to safely return the stolen files. Recently, hackers have taken the practice further by threatening to publish stolen data online if the company does not provide additional payments.

Ransomware is a real threat, impacting millions of businesses annually. It is time to create a risk management plan to prepare your business and mitigate the threat to your revenue and reputation. 

Step 1: Prevention

The first step in your risk management approach should be prevention. Taking measures to protect your company’s data against hackers can help reduce the risk of a ransomware attack, though it will not completely eliminate the threat. 

Implementing a range of prevention strategies can help protect your business from multiple angles. Strategies might include:

• Back up data offline or in secure cloud storage to prevent cybercriminals from deleting or encrypting all copies of it.
• Use multi-factor authentication to prevent unauthorized users from logging into your systems.
• Keep up with system updates to patch vulnerabilities.
• Use application whitelisting to prevent malicious software from running,

Prevention is your first line of defense against ransomware attacks. While even the best prevention efforts are not always enough to ward off attacks, they can minimize the frequency with which you face these threats and show cybercriminals that you take data security seriously. 

Step 2: Detection

Detecting data breaches and malware in your system as soon as possible lets you take prompt recovery measures and alert your cyber insurance provider quickly to begin mitigating the damage. There are three primary ways to detect ransomware:

• Signature-based detection: Comparing the “signature” of programs in your network to known malware signatures. This is a common feature of most antivirus solutions. 
• Traffic-based detection: Analyzing network traffic for suspicious patterns 
• Behavioral detection: Monitoring the network for abnormal activities indicative of ransomware, such as encryption or mass renaming.

You can implement technology that covers all three forms of detection and instantly alerts you to potential threats. 

Step 3: Recovery 

Recovering from ransomware attacks is often a combined effort. These cyberattacks can affect several areas of your business: they drain revenue, hurt customer trust, and impact your overall reputation, among other effects. 

Investing in cyber insurance for ransomware attacks can significantly aid recovery efforts. This insurance coverage provides financial protection to make up for the monetary losses incurred from the breach. It also gives you access to essential services to restore your data and reputation. 

For example, your cyber insurance policy might cover:

• Immediate incident response
• Data recovery costs
• Legal fees
• Business interruption losses
• System repair costs.

It can even fully cover the costs associated with ransom demands, if your business has no choice but to pay the demand. 

Your insurance provider can connect you with data recovery experts and cybersecurity professionals who can restore your business to its previous operations and help prevent future cyberattacks. This comprehensive coverage is a lifeline for modern businesses facing increased cyber threats. 

Fortify your business with cyber insurance from Gilsbar 

If you are ready to purchase cyber insurance and mitigate the effects of a ransomware attack, Gilsbar makes the process seamless. Allow us to explain cyber insurance and the different coverage options available and provide a free quote based on your business’s needs.

Contact us today via our online form or call (985) 892-3520 to request your cyber insurance quote.