Ransomware Attacks On The Rise: Will Cyber Insurance Protect You?

In just one year, ransomware attacks reported to the New York State Department of Financial Services ("DFS") have almost doubled.  In these incidents, a cyber-attacker installs malware that encrypts a victim's computer systems or files and then demands a fee, or ransom, to unlock the encrypted data.  Fortunately, cyber insurance that expressly covers the risk of ransomware has been widely available in recent years.  These policies will pay for some or all of the ransom demand in the event of a ransomware attack, allowing the policyholder to regain control over its files and systems and resume operations.  While paying a ransom is unappealing to most, it is typically far less expensive than the cost of replacing or restoring permanently-locked files and equipment, along with associated downtime.