While it may not be on every business executive’s list of potential threats, cyberextortion is a growing problem for any company with computerized information. This type of crime usually involves a data breach that extortionists use to gain the leverage needed to demand ransom. While business owners may think that cyberliability policies adequately protect against such threats, kidnap and ransom policies are better suited to the task. To begin with, many extortionists do not have the information that they say they do. Companies with kidnap and ransom policies, which are designed to include extortion, can often avail themselves of the use of aligned security and consulting firms, who can determine the viability of the threat and deal with it.
NOTE: Instead of capitulating to cyberextortion threats, which may not even be real, issuers of kidnap and ransom insurance are experienced enough to identify the extent of the danger and either dismiss it or use a negotiator, who can counter the extortionist.