Update: Lansing Cyberattack Underscores Need for Cyber Insurance Coverage
We recently wrote about how a Cyberattack on Lansing, Michigan's Board of Water and Light ("BWL") resulted in costs nearing $2 million for technical support and equipment upgrades. In fact, BWL's total costs have now stretched to $2.4 million, including a $25,000 ransom paid to the attackers. These facts underscore that the costs of such attacks can be enormous, especially when ransomware is involved.
Recent news resulting from a Freedom of Information Act request revealed that BWL filed a $1.9 million insurance claim for losses relating to the attack, representing $2 million in covered losses minus a $100,000 deductible. Businesses should note that cyber insurance policies can effectively mitigate the risks of cyberattacks, especially when combined with other preventative measures as part of a larger Data and Systems Protection Plan.
If you have any questions about your business's exposure to data privacy risks, please contact Taylor Gast at 517.371.8238.
Taylor helps businesses and business owners solve and prevent problems as a member of Foster Swift's Business and Corporate practice group. He handles business formation and transactions, tax controversies, employee benefits, and technology related issues.View All Posts by Author ›
- Trade Secrets
- IT Contracts
- Cloud Computing
- Venture Capital/Funding
- Intellectual Property
- Employee Benefits
- Personal Publicity Rights
- Domain Name Registration
- Social Media