Do you have adequate Ransomware Cyber Insurance Coverage?

18 August 2022 Internet, IT & e-Discovery Blog Blog reported that “Organizations lack sufficient levels of cyber-insurance coverage to protect themselves in case of a ransomware attack, with just 14% of businesses with 1,400 or fewer employees boasting coverage limits above $600,000.”  The August 11, 2022 article entitled “Cyber-Insurance Fail: Most Businesses Lack Ransomware Coverage” included these comments about a “BlackBerry and Corvus Insurance survey of 450 business decision-makers for IT and security solutions”:

Nearly six in 10 (59%) of respondents said they hoped the government would cover damages when future attacks are linked to other nation-states, and fully half of small to medium-size business (SMB) respondents said they hoped Uncle Sam would increase financial aid in all ransomware incidents.

The survey also revealed that the increased software requirements demanded by insurance brokers is making cyber insurance harder to get — more than a third of respondents said they had been denied coverage due to unfulfilled endpoint detection and response (EDR) software requirements.

Overall, the findings indicated that even when organizations do have cyber insurance, the coverage lacks critical elements, with 43% of survey respondents not covered for auxiliary costs, including court fees or employee downtime.

What about your company?

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.