What is ransomware?
Ransomware is a type of cyber attack where a hacker will threaten to publish the victim’s data or permanently block them from accessing it unless a ransom is paid. (source)
Can these attacks happen to anyone?
YES! Ransomware attacks don’t just happen to big businesses like Colonial Pipeline. It’s much more common in smaller companies than most of us would ever imagine. It is estimated that a business will fall victim to a ransomware attack every 14 seconds.
Small businesses represent 43 percent of all cyber attacks. They are typically targeted as they aren’t spending significant investments into security. Can you imagine not being able to access data on your clients and prospects?
So, why has this increased lately?
One major reason is that more employees are working remotely, many times in insecure locations. Home wifi is generally not as secure as office wifi is. Hackers know this and have taken advantage of it, especially with small businesses.
In addition to the risk of not being able to access important data, the hackers may release that information to others, which puts you at liability risk for damages if personal information is leaked. The average cost of the ransom requested is estimated to be about $8,100. And the average cost of the downtime per incident is $283,000!
So, how do you protect yourself?
You can protect yourself by adding cyber liability coverage to your coverage portfolio. This coverage can help protect you from both the cost to remediate the attack as well as the business income lost during the attack. Often, this is offered as additional coverage on an existing policy, or it can be offered as a separate policy if you choose. Not sure if your policy has that? Ask your agent, or reach out to us anytime. We are always happy to be a resource. Visit our website at keslarinsurance.com, or feel free to give us a call at (603) 273-0953.
