Cyber and Kidnap/Ransom Insurance Should Respond to Massive Global Ransomware Attacks in More than 1

May 30, 2017 by Nicholas Reuhs, Partner

Cyber and Kidnap/Ransom Insurance Should Respond to Massive Global Ransomware Attacks in More than 100 Countries
But Policyholders Must Consider Complex Issues Surrounding the Reporting and Consequences of These Attacks


The recent ransomware attack led many to reevaluate how prepared their organizations are for such an event. While risk mitigation (i.e., prevention) is critical, so is risk transfer through insurance. Most cyber insurers offer cyber extortion coverage as part of their policies, although the coverage can sometimes be difficult to locate and analyze in the context of a larger cyber policy. Moreover, some policies automatically include extortion coverage while others require a specific coverage election (and additional premium). Of course, not all policies are created equal and certain recent policy forms have included very problematic language (requiring law enforcement intervention) that has the potential to render the coverage illusory. So, the recent headlines are a good reminder to review your cyber insurance policies carefully:
 
Wire Transfer Fraud Continues to Affect Business
 
Worldwide Ransomware Attack Cripples Hospitals, Schools, and Businesses.

For more information on protecting yourself and your business from ransomware and other cyber-attacks, contact Nick Reuhs or another member of Ice Miller's Data Security and Privacy Practice.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.



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