Following the ransomware attack, the city of Baltimore has approved two cyber-insurance policies to protect itself from future threats.
Baltimore became the second US city in 2019 to be struck by the ransomware strain RobbinHood. The attack led to the city’s servers turning offline, and preventing residents from paying water bills and other services.
Although the mayor, Bernard C. “Jack” Young refused to pay the hackers the ransom of $76,000, the city now faces an estimated cost of $18m in delayed revenue or direct costs and loss.
As a result, Baltimore has purchased a cyber-insurance plan from Chubb Insurance costing $500,103 in premiums, and another plan from AXA XL Insurance for $335,000 – both of which will provide the city with protection and coverage against cyber-attacks for a year.
A spokesman for Mayor Young, Lester Davis said: “The city is going to reassess every year. They will have to go through this process again when the terms are nearing maturity.”
When asked whether the city would likely pay the hackers now it had the insurance policies, Mayor Young responded: “I would talk to my team and decide that way.”
“Hopefully there will not be another cyberattack in Baltimore City, but it’s good to have the insurance and to have the safety net,” said Deputy Chief of Staff of Operations Sheryl Goldstein.
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