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Ransomware attacks highlight need for cybersecurity insurance

The high profile hack of SolarWinds last year was one of the biggest cybersecurity breaches of the 21st century, compromising the data, networks and systems of thousands of companies worldwide.

The attack on SolarWinds, a major software company, was inadvertently delivered through backdoor malware as a systems update and has focussed attention on the need to have cybersecurity insurance in place.

While a major global event like SolarWinds grabs the headlines the growing threat of ransomware - malicious software designed to block access to a computer system until a sum of money is paid - is something that affects not only big institutions but also SMEs and local businesses. Researchers estimate that the number of worldwide ransomware attacks grew by more than 150% in 2020 with the damage predicted to cost $20 billion in 2021.

Ransomware causes reputational harm and the costs associated with the resulting business interruption intensifies the need for a cyber insurance policy that builds on a company’s existing cyber risk management programme.

The impact of the COVID-19 pandemic has seen remote working becoming the “norm” with employees operating on computers outside the business setting increasing the dangers of data breaches by exploiting system weaknesses.

A strategically delivered insurance policy helps minimise business disruption during a cyber incident and its aftermath, as well as potentially covering the financial costs of some elements of dealing with the attack and recovering from it.

Cyber insurance – also known as cyber-liability insurance – helps protect organisations from the fallout from cyber-attacks and hacking threats by potentially covering any resulting financial costs and minimising business disruption.

W Denis Insurance Brokers has an expert Cyber Insurance department, that can offer specialist technical advice. To discuss this further with an expert at W Denis, please make arrangements with Daniel Moss at daniel.moss@wdenis.co.uk or on 0044 (0)113 2439812

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