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January/February 2022  Volume 33, Number 1        

This Just In ...

Working from home with weak security during the pandemic has created a surge in ransomware attacks.

As a result, losses plus increased demand has caused insurers to reduce the amount of cyber insurance they are willing to offer by half, says Business Insurance. At the same time, they have increased premiums for these coverages, including repairs, business insurance and reputational damage remediation.

Insurers that issued $5 million cyber liability policies last year have scaled back to limits of between $1 million and $3 million in 2021, according to a report released last month by U.S. broker Risk Placement Services.

Not just Lloyd’s of London, which controls a fifth of the cyber insurance market, but U.S. insurers such as American International Group, have reduced their capacity.

Cyber criminals used to favor stealing data and selling it to third parties, but now ransomware is the attack of choice. A ransomware attack on the Colonial Pipeline shut down the largest fuel pipeline in the nation in May, resulting in a payment of $4.4 million to the hacking group DarkSide, though some of that ransom money was later recovered by the authorities.

Premium rates have almost doubled in the United States and jumped by 73% in Britain because of the frequency and severity of ransomware attacks, insurance broker Marsh told Business Insurance.

Rates for some policies had risen by as much as 300%.

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In this issue:

This Just In...

Verdicts Go Nuclear

How to Avoid the Legal Pitfalls of Telecommuting

7 Ways to Improve Company Driver Safety

Benefits of Green Construction



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