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.