The recent ransomware attack of the Colonial Pipeline Company and other cyberattacks disrupting infrastructure and business operations are becoming more and more common. The FBI's 2020 Internet Crime Report cites that the number of ransomware complaints received by their Internet Crime Complaint Center (IC3) have increased by 66% between 2018 and 2020.
Fortunately, many organizations are taking out insurance policies that help cover some of the costs they incur as a result of an attack. Managing the insurance claim and calculating the amount of lost income is itself a formidable and complex task. An independent accountant knowledgeable about business interruption insurance claims, such as the team at DGC, should advise you. It is critical that your claim is prepared and supported efficiently and properly to ensure that you recover your losses timely. Our Business Interruption Insurance Claim Checklist details the steps that should be taken when filing a claim.
In addition to paying any ransom, organizations will incur a multitude of other costs as a result of a ransomware attack. These costs include items such as: notifying impacted parties, regulatory filings, forensic analysis, data restoration, wiping or replacing compromised electronic devices, legal fees, and lost income. If your claim is supported appropriately, you will be more likely to have a favorable resolution to your claim.
If you would like to discuss how DGC can advise you on these types of matters, contact a member of your client service team or Elisabeth da Silva, CPA, CFF at 781-937-5792 / firstname.lastname@example.org or Brian McDonough, CPA, CFE at 781-937-5362 / email@example.com.