The Expert Podcast

You've heard us talk a lot about the increase in cyber attacks and ransomware, and how it's an exploding market and a vastly increasing risk for companies. How big of an increase? Well, here you go.

This is from a cybersecurity industry publication: there's been a 500% surge in ransomware losses. A global leader in cybersecurity revealed in its annual State of Ransomware report that the average ransom payment has increased by 500%. Organizations are now paying a payment of 2 million dollars, up from 400,000 dollars just last year. CDK just allegedly paid 25 million dollars to get rid of their cyber attack lockup.

So, if you're a company that has not been affected by a cyber attack or cyber risk, be aware that the costs for resolving this are going up exponentially. You may find that hundreds of thousands of dollars is not enough if you have a cyber liability.

You will be back in your video in just a few seconds. In the meantime, remember that ActualHuman.com offers you live one-on-one private video consultation with an expert in this exact subject. We want to listen to your story, hear your questions, give you expert advisement of your options, and tell you what we know about your particular situation. Now, back to your video.

The policy you want to make sure is a standalone policy, not just an endorsement on your existing general liability or GL policy. You want to make sure the coverages are more than 10 or 15 thousand dollars, which is nothing these days, and that it covers third parties. You want to make sure it covers upstream and downstream clients and vendors, and that it also has coverage for active monitoring. So, during the course of that policy period, the insurance company is helping you monitor for threats and breaches.

In addition, you want to make sure the policy has a response team. So, if you have an attack, you can just pick up the phone, call them, and they have a response team available. There are other policies that don't have these that may be cheaper; you may want to consider those, but these are the keys that we would recommend you have. And if not, that you intentionally disclaim those and not have those as part of the coverage that you go with because the losses are increasing. It's just a matter of time; every business will be affected by it at some point.

If you like this video, be sure to click on a few others on our channel to see if there's other information that might be helpful to you about this same subject or maybe even other related subjects that could assist you with the resolution of your issue.