On June 27, hackers (reportedly from the Ukraine) released a ransomware virus/worm which which required a $300 bitcoin payment to unlock users files/computer. According to industry experts, this presages a growing wave of cyber extortion. The success of these attacks makes them nearly certain to continue. Here are a few items to look for in your Cyber insurance policies:
- Make sure that you have cyber extortion coverage, the coverage part under which ransomware claims are paid.
- Make use of the insurer’s risk management facilities. Insurer risk management and loss control facilities often have information on the malware and its author, as some extortionists are more honorable than others (if your clients are prepared to pay the ransom, it is beneficial to know whether access to your clients data is likely to be regained).
- The Petya worm, like the Wannacry worm before it exploit computers which have not been updated with current software patches. If your cyber insurance contains an exclusion of loss due to the clients’ lack of timely updating or a warranty that the coverage is dependent upon timely software updates, then the value of the extortion coverage is severely restricted.
- Check the deductible and reporting mechanisms for the claim. Because of the rushed nature of the ransomware attacks, insureds are generally making the decision to pay ransom within a few hours. If the dollar amount is substantial, then spending a few minutes to ensure compliance with the policy reporting may pay dividends.
- As part of a risk management program, having an account with bitcoins in reserve may be a prudent part of a disaster recovery plan.
Call us today for info on how we can craft a cyber insurance policy for your clients. (513) 271-3400
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Cincinnati Intermediaries is an insurance wholesale broker focused exclusively on the placement of management and professional liability insurance.
We have sound expertise in Management Liability, E&O, D&O, Miscellaneous Professional, Cyber, Architects & Engineers, Financial Institutions, Lawyers and Non-Profits.
Headquartered in Cincinnati, OH, we operate nationwide and are able to assist retail insurance agents with placement of coverage nationally. Cincinnati Intermediaries represents the majority of the admitted and surplus lines insurance carriers that focus on professional liability insurance in the United States.