Understanding Ransomware & Malware: How Cyber Insurance Can Protect Your Business

Cyber threats like ransomware and malware are on the rise, targeting businesses of all sizes. But what do these terms mean, and how could they impact your business? 

Malware is any malicious software designed to damage or infiltrate systems. This includes viruses, spyware, and Trojans, which can steal data, monitor activity, or disrupt operations.  

Ransomware is a specific type of malware that locks you out of your own data or systems and demands a ransom payment to restore access.  

Both ransomware and malware attacks can lead to lost revenue, reputational damage, and costly downtime. Ask yourself these questions: 

•  Imagine the impact if your critical files or customer data were suddenly inaccessible.  How would your business cope?  

• Do you have a plan in place to recover from such an attack?  

• Could you cover the expenses of data recovery, legal fees, or lost income if your systems were compromised? 

Cyber insurance can be invaluable when you fall victim to a cyber crime. A well-designed cyber policy may cover financial losses from malware or ransomware attacks.  Consider these coverages that are available under a cyber policy: 

• Data recovery costs 

• Ransom payments (where legal) 

• Public relations efforts to repair reputational harm 

• Proactive defense costs, like training programs and security assessments, to help prevent attacks before they happen. 

A cyber insurance policy is an essential part of a comprehensive insurance program.  Contact  

Del Vath, cyber risk consultant and resource manager for Knight Insurance Group, for more information.