Does Cyber Insurance Cover Ransomware?
Often—cyber insurance may cover investigation, data recovery, interruption, and extortion costs after ransomware, subject to separate triggers and limits for each.
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.
