The Cyber Extortion Plight: Dealing with the Uptick in Ransomware, Spear Phishing, and Social Engineering Events – Which Way to Go When It Happens, the Extent to Which It Is Covered, and Some Practical Guidance on Mitigating the Effects and Potentially Preventing These Types of Attacks?

November 30, 2016 10:25am

Katie A. Kruizenga
Vice President, Professional Lines
AmWINS Insurance Brokerage of California, LLC

David M. Lisi
Greenberg Traurig, LLP

Cristina De Luca
Assistant Vice President, Professional Lines

Randy V. Sabett
Vice Chair of the Privacy and Data Protection Practice Group
Cooley LLP

Jenny Soubra
National Practice Leader, Cyber, Media & Specialty PI
Allianz – AGCS

  • Should ransom be paid/not paid? What are the consequences of either of these decisions? If it is paid, how does it affect insurance? What should cyber insurance cover? Is it a separate element that has to be purchased within cyber policies? Should it be sublimited?
  • How to deal with the cost of business interruption after a ransomware event: How does the cyber policy respond? Does it pay as a business interruption loss? As an extra expense? As a cyber-extortion loss?
  • What is/should be insurance solution for the theft of electronic funds? Cyber? Crime? Other? Where does it fall now? Where are the gaps? Does it need to be a new product or an endorsement on an existing product?
  • What may be some of the ways to avoid these types of attacks?
    • Backing up data and updating systems
    • The need for companies to have a proactive security posture in terms of monitoring what’s coming into the network; The need for companies to have a strong people-management given that a lot of these attacks involve employee error
    • How often to keep training and how to keep maintaining employee awareness?