Cyber Insurance Offers Small Businesses Ransomware Protection

Ransomware protection is becoming more and more important for small to mid-size businesses.  That’s because cyber attacks seem to increase every year and ransomware actors are shifting their approach. They’re calling it “mid-game hunting.”

This is backed up by a recent study by the incident response and ransomware negotiation firm “Coveware.” Their researchers found fewer large ransom payments and lower payments being made by middle-market organizations in the third quarter of 2021.

The average ransom payment amount stayed around the same level between the second quarter (Q2) and Q3 at $139,739, but the median amount jumped over 50% to $71,674, the firm reports. Both statistics are down significantly from the first quarter (Q1) of 2021.

What Do The Results Mean?

Why is ransomware protection vital to small to mid-size businesses? The answer is in the results. You may think you’re safe because of your size, but it turns out, you’re the perfect target.

“Ever since the pipeline attacks this spring, we have seen statistical evidence and intelligence showing that ransomware actors are trying to avoid larger targets that may evoke a national political or law enforcement response,” Coveware notes. “Middle-market companies that are not systemically important may not offer up the largest ransoms, but are more cost-effective to attack and may still provide a sizable payment if the company is caught without the proper defenses and backup assets.”

What Businesses Need Ransomware Protection?

ransomware and insuranceCyber attacks can happen at any time. In Q3, small professional services firms bore the brunt of attackers’ efforts, followed by public entities and health care. Firms suffering ransomware events in Q3 were predominantly in the small to the middle-market range, with 43.6% of attacks at firms with 101 to 1,000 employees and 34.7% at firms with 11 to 100 employees. Believing they aren’t a target for an attack can make smaller business owners even more vulnerable.

“This fundamental misconception of how ransomware attacks are manufactured leads companies to believe they will never be struck by lightning,” Coveware noted. “What they do not realize is that this type of thinking actually makes them a lightning rod for attacks.”

That’s why no business is too small for ransomware protection.

Recent Ransomware Attacks

Ransomware actors remain dedicated to data exfiltration as a tactic to pressure victim companies into paying. Coveware found 83.3% of Q3 attacks involve the theft of corporate data, up 3% from Q2.

According to the firm, paying still isn’t the best idea. Ransomware actors typically don’t destroy the data. They may sell it, misplace or trade it, or keep it for future extortion attempts. A promise of deletion in exchange for payment also doesn’t extinguish any legal or contractual notification requirements on the part of organizations.

“Even if the threat actor deletes a volume of data following a payment, other parties that had access to it may have made copies so that they can extort the victim in the future,” Coveware noted.

Cyber Insurance Coverage

The report shows that despite a host of government initiatives, the extortion economy brings in new players every day; threat actors show no signs of stopping, even as they shift targets. Coveware noted that for cybercriminals, ransomware is still too lucrative and easy to deploy to quit.

“This past quarter has seen an unprecedented amount of domestic and international activity from government and law enforcement to counter the operations of ransomware actors,” Coveware indicated. “Despite these initiatives, ransomware actors continue peppering enterprises with more attacks than ever. What we are doing is not working, at least not yet.”

The way businesses can help protect their assets is by adding cyber insurance coverage. This coverage protects businesses from third-party responsibility and reimburses them for costs incurred as a result of a data breach. This includes:

  • Legal Counsel and Defense
  • Digital Forensics Team
  • Notification Fees
  • Crisis Communications
  • Establishing a Contact Center
  • Credit monitoring
Don’t leave yourself totally exposed to a cyber attack. Cyber insurance can be essential in helping your company recover from a ransomware attack. 

Cyber Insurance For Small Businesses

If you’re looking for ransomware insurance for your business, we can help. Autumn Insurance has cyber insurance policies available that are customized for your business needs. Whether you need ransomware protection or commercial insurance, you can learn more by calling us today at 248-478-1177.

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