Does Cyber Insurance Cover Ransomware?
A cyber policy may cover response costs after a ransomware attack, such as investigation, restoration, or interruption, if its trigger and terms are met.
Ransomware encrypts or blocks access to systems and can also involve threats to disclose data. A policy may address the resulting investigation, legal response, restoration, interruption, and extortion costs, but each can be subject to a separate coverage section or limit. The Insurance Information Institute describes ransomware among risks standard cyber policies may address, and Chubb describes a ransomware endorsement for its product; neither source guarantees that another form responds.
Check whether the definition covers encryption, data extortion, or both. Review the waiting period for interruption, the recovery period, extortion sublimit, coinsurance, and any exclusion tied to unpatched software or prior events. Find out whom to call and whether the insurer must approve vendors or expenses before work begins. Keep backups and response records available.
Related Coverage
Providers That List This Coverage
Sources
- Cyber Insurance. Federal Trade Commission; What Should Your Cyber Insurance Policy Cover; First-Party Coverage; Third-Party Coverage. Accessed 2026-09-25.
- Cybersecurity for Small Business. Federal Trade Commission; Govern; Cyber Insurance; Common Cyberattacks: Phishing, Ransomware, Business Email Imposters; Vendor Security. Accessed 2026-09-25.
- CyberEdge specimen policy. AIG; General Terms §§4–6, PDF pp.3–6; Security and Privacy §§1–3, PDF pp.11, 14–18; Event Management §§1–2, PDF pp.19–20. Accessed 2026-09-25.
- Cyber insurance coverage & products. Chubb; Cyber insurance coverage; First party coverage; Third-party liability coverage; Cyber crime (by endorsement); Products and services. Accessed 2026-09-25.
- Cyber insurance: a key part of a robust business strategy. Insurance Information Institute; What are the types of cyber insurance coverage?; What isn’t covered by cyber insurance?; Is cyber insurance affordable?; How much cybersecurity coverage do businesses need? Accessed 2026-09-25.
