Description

Cyber extortion typically involves criminals threatening to damage, release, or block access to a company's systems or data unless a ransom is paid—often in cryptocurrency. Common forms include ransomware, data leaks, or distributed denial-of-service (DDoS) threats. These attacks are highly disruptive and can bring business operations to a halt.

For SMEs, the impact can be devastating. A locked system can mean lost sales, missed deadlines, and the inability to serve customers. If sensitive data is at stake—such as client records, payment details, or trade secrets—the pressure to pay and avoid reputational fallout can be intense. Worse still, paying the ransom doesn't guarantee recovery or non-disclosure.

Cyber insurance policies with extortion coverage provide crucial support: access to negotiators, ransomware experts, and legal counsel, as well as coverage for ransom payments (where legally permissible), business interruption, and system restoration costs. Some insurers also help with cryptocurrency handling, forensic investigations, and liaising with law enforcement.

The real value of this cover is not just financial—it's strategic. With experts guiding you through a high-stress, high-risk event, your business can respond calmly, lawfully, and effectively, without being strong-armed into hasty decisions.