Is Ransomware Covered by Cyber Insurance?

Generally yes, ransomware falls under a cyber liability policy’s cyber extortion coverage. Most modern policies will pay or reimburse a ransom payment, usually requiring insurer pre-authorization before any payment and use of the insurer’s approved incident response vendors. Coverage is sometimes sublimited to a fraction of your overall policy limit.

One rule applies no matter what: U.S. Treasury OFAC sanctions prohibit payments to certain sanctioned individuals or groups, and insurance does not provide legal safe harbor from that. See the full explanation in Does Cyber Insurance Cover Ransomware Payments?