If your systems are down due to a Ransomware attack, Business Interruption coverage can help by protecting your agency from loss of your income and additional expense when the Insured Computer System sustains a detectable interruption. This is applied after a waiting period of 48-hours at which the coverage retention (deductible) will apply to a covered loss.
How does the policy determine income loss?
Income Loss means the net profit before taxes that You do not realize due to an Interruption in Service, including fixed charges incurred by You to the extent that such charges would have been incurred had there been no Interruption in Service. Income Loss shall be calculated on an hourly basis based on net profit and shall apply only to that time period during which Your Computer System is affected by an Interruption in Service called the Period of Restoration which not exceed 30 days.
To get a sense of the concept behind the calculation, take your yearly net profit and divide it by the total hours in a year, 8,760. This will give you your agency’s net profit per hour. Multiply that by how many hours your computer system is affected by an interruption in service and you will get your total business interruption loss of income. There is also coverage for additional fixed expenses that you incur during the Period of Restoration.
* Based on policy information provided by: Victor O. Schinnerer & Company, Inc.