The rise in ransomware attacks over the last year is disrupting the cybersecurity insurance business. It’s not just the ransoms driving up the costs of claims. It’s also the business interruption costs. Let’s take a closer look:
Immediate Business Impact
Business interruption arising from a ransomware attack may be a few hours or a few days. For example, the Colonial Pipeline attack led to a week-long fuel shortage across the east coast in mid-2021. On the other hand, attacks against the enterprise may be a few hours or days.
However, the few days or hours of downtime may still lead to large business losses. The longer an organization’s data is encrypted, the longer it takes to get back to business.
Time to Recover
Backup and recovery also reduce the time it takes to fully recover from a ransomware attack. Organizations with robust data backup and recovery are more likely to resume business as usual, reducing the business interruption costs.
However, in order to put a data recovery process in place, companies need a backup solution that works across multiple types of devices, including user devices and servers.
Equally important, they need backup services that enable them to have real-time or near real-time backups. As companies use the cloud to engage in business operations, data changes nearly every second, especially across hybrid workforces. This means that in the event of a ransomware attack, having a data backup from the previous day can lead to significant losses.