The WannaCry ransomware is one of the most significant and widespread cyber security attacks ever experienced. On May 12, 2017 ransomware began impacting a large number of organizations and caused damage across the globe over the weekend, stopping manufacturing units, hospitals, IT firms and financial institutes. “Ransomware” locked up more than 200,000 computers in more than 150 countries and asked users to pay a US$300 ransom in bitcoins.
In India, ransomware attacks are rising because the majority of companies and individuals are not using the upgraded and latest software and machines, sectors like manufacturing, healthcare, pharmaceutical, energy, utility and companies that have intellectual property and customer data are particularly vulnerable.
Cyber risk insurance is designed to cover both liability and own damage losses due to cyber attack. The policies cover a variety of expenses associated with data breaches like notification costs, credit monitoring, costs to defend claims by state regulators, fines and penalties, investigation cost and loss resulting from identity theft. In addition, the policies cover liability arising from potential legal suits, as well as business interruption, data loss/destruction, computer fraud, funds transfer loss, and ransom demand.