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Are you covered for Ransomware?31 March 2017

You might have seen recent news pieces about “Ransomware” – a type of cybercrime where criminals lock you out of your own computer and demand a ransom to let you back in (anywhere from a few hundred to thousands of dollars).

Think it can’t happen to you?

Recently, a small business client in Adelaide wrote to us and explained that they had just become victims of Ransomware, and that it had affected the computer of their payroll officer. While their IT provider worked to try restoring backed-up versions of their data, everyone in the organization had to wait for their pay cheques. Not only that, there were some things that couldn’t be retrieved from the back-up copy, so they were facing bills to replace software and IP on top of their service provider’s fees. Their question to me – were they covered for the multiple financial costs of this attack under their general business insurance policy?

The answer, sadly, was no.

To date, there have been no general insurance policies available to SME businesses with provisions to protect against these events. If Ransomware infects your business system (the incidence of which appears to be rising dramatically), you are exposed to multiple dimensions of financial risk, not to mention the inconvenience.

To help clients protect themselves against the rise of cybercrime, one of our insurance product providers has just released a brand new type of cover that protects you against:

  • Loss of revenue to your business due to cybercrime / Ransomware
  • Ransom cost
  • IT costs of repair to hardware and data, virus extraction, reinstatement of data and hardware damage
  • Liabilities to third parties you are responsible for, financial loss, privacy breaches and statutory fines, credit card monitoring and more.

While it is prudent to consult an IT expert about appropriate security measures for your IT systems, the general consensus is that cybercrime risks can never be completely eliminated. However you can now ensure that you are protected against the multiple (and sometimes significant) financial costs borne in the event of an attack. Call Shield Insurance and speak to one of our team to learn more about cybercrime risk protection options for your business.

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