RISK MANAGEMENT magazine recently reported on the growing threat of ransomware in an article by Editor Hillary Tuttle titled “Ransomware Ready: How To Prepare For The Day You Get Locked Out.” According to the article:
It has become a cliché with so many cyber risks that the question is when, not if, a business will face the threat, but this aphorism is perhaps most accurate when it comes to ransomware. Last year, the FBI recorded more than 4,000 attacks a day, a 300% increase over 2015, and cybersecurity firm Kaspersky Lab reported that ransomware attacks on businesses went from one every two minutes in January 2016 to one every 40 seconds in October. Whether deployed for strategic disruption or for quick cash-grabs, with ransomware available for purchase on the dark web and the considerable efficacy and ease of launching attacks, the threat only grows.
Preparation is critical to weather a cyber attack, and one way for a business to be well-prepared is to own its own insurance company, known as a captive insurance company. Captives allow businesses to have insurance policies with fewer exclusions than most commercial policies. Also, captives can also be more timely and responsive in the event of a claim. This can be the difference between surviving a ransomware attack and going out of business.