A landscaping contractor based in California fell victim to a cyber ransom attack. Fortunately, the insured was able to recover some of the losses thanks to NIP Specialty’s cyber liability coverage. As these types of attacks are becoming more commonplace, business owners should consider cyber coverage suitable for their needs.
A hacker was able to discover a security flaw in a server and firewall that had not received regular system updates in over 8 years. The cyber criminal encrypted the insured’s data demanding $17k in Bitcoin. Refusing to pay the ransom, the insured opted to contact the FBI instead. Overall, the damages incurred were:
- A loss of 1 month’s worth of data that had not be been backed up
- Eight computers required to be replaced
- The total cost of repairs amounting to over $5ok
Fortunately, the insured was able to access and re-install an available data backup that was approximately one month old. Within a week, they were also able to reenter the missing data from the prior month. Through their cyber liability policy with NIP Specialty, the insured was provided with indemnity coverage limits of $27,500. As these these attacks continue to become more commonplace, business owners should consider regularly backing up their data on a separate server or hiring an IT professional to manage their network security. Organizations should educate employees on preventing cyber attacks, particularly how to recognize suspicious emails, links, and attachments. Cyber attackers are always refining their techniques, so continued education is imperative.
NIP Specialty is dedicated to providing insurance solutions for hard to place risks throughout several unique industries. Our insurance experts not only have access to customized products thanks to our strong carrier and broker relationships, but we also provide the guidance needed to prevent cyber attacks of this type. Our experts have access to world-class risk control services that can help any business effectively prevent and manage cyber-related claims. Ransomware attacks can happen to any business resulting in severe financial losses due to business interruption. Don’t let cyber attacks ruin your investment! Contact NIP Specialty today at 800.446.7647 or firstname.lastname@example.org for more information.