Ransomware Attack Highlights Need for Cyber Insurance and Resilience

A cyber attack, confirmed as being ransomware, against the AI-driven supply chain platform Blue Yonder is having a broader impacts on both sides of the pond: Starbucks in the U.S. is said to be affected as at least two of the big four U.K. retail supermarket chains.

The ransomware attack on Blue Yonder has disrupted operations for a global giant like Starbucks. Target too has gone through similar disruptions only recently. These incidents should be a very pertinent reminder to all of us as to how deeply interconnected our businesses have become. If companies as established as these can be hit, what does that mean for the rest of us? There isn’t just one company being targeted—this very rapidly becomes a chain reaction that impacts employees, customers, and businesses alike.

Unlike the Target breach, which was more about stolen data, Starbucks is dealing with ransomware — designed to lock you out of your own systems, grind operations to a halt, and leave businesses scrambling to recover. The financial impact is significant. In 2023, the average recovery cost from a ransomware attack reached $1.82 million, with 84% of organizations reporting business losses due to these attacks.

Having comprehensive cyber insurance is critical in helping you manage the financial fallout. Moreover, it brings you immense peace of mind and ensures you have a plan in place when things go wrong – not just recover but come back stronger. A strong cyber insurance policy provides ransomware payment coverage, third-party liability protection for vendor-related breaches, business interruption coverage for lost income, 24/7 incident response and recovery services, and compliance assistance to navigate data protection laws. It is always a good idea to get it tailored as per your unique needs and to go with an option where you have 24X7 claims support. In a world where ransomware can hit anywhere, resilience is everything.

Having comprehensive cyber insurance is critical in helping you manage the financial fallout. Moreover, it brings you immense peace of mind and ensures you have a plan in place when things go wrong – not just recover but come back stronger. A strong cyber insurance policy provides ransomware payment coverage, third-party liability protection for vendor-related breaches, business interruption coverage for lost income, 24/7 incident response and recovery services, and compliance assistance to navigate data protection laws. It is always a good idea to get it tailored as per your unique needs and to go with an option where you have 24X7 claims support. In a world where ransomware can hit anywhere, resilience is everything said Evaa Saiwal, Head-Cyber Insurance, Policybazaar for Business said that.