Ransomware: 5 Ways to Protect Your Business

Ransomware attacks are increasingly common in Australia. While no organisation can guarantee prevention, there are practical steps you can take to reduce risk. And when prevention fails, cyber insurance provides financial protection to cover recovery costs and business interruption.

The Ransomware Threat

Ransomware attacks are targeting Australian organisations at an accelerating rate. Key facts:

• Ransomware attacks are occurring every 6 minutes globally, with Australian organisations increasingly targeted
• Average incident costs for small businesses are around $56,600; serious incidents can exceed $180,000 to $400,000+
• Business email compromise (where attackers impersonate colleagues or suppliers) accounts for 58% of cyber insurance claims globally
• Since 30 May 2025, organisations with annual turnover over $3 million must report ransomware payments to the Australian Signals Directorate within 72 hours

Importantly, many business leaders believe their data is safe because it’s stored in the cloud or managed by an IT service provider. However, ransomware typically enters organisations through phishing emails containing genuine-looking links or attachments sent directly to staff. Criminals often impersonate trusted colleagues, familiar website domains, or known suppliers, making it easy for staff to be caught off-guard.

5 Ways to Reduce Ransomware Risk

1. Implement Core Device Protection

Organisations typically implement security software including antivirus protection, firewalls, spam filters, and regular security patches kept up to date. Equally important are regular data backups with copies stored securely offline, separate from production systems.

Insurers assess whether organisations have these basic controls in place when underwriting cyber policies. Strong implementation often results in better insurance terms.

2. Staff Awareness and Phishing Training

Employees can inadvertently expose organisations to ransomware by clicking suspicious links or opening attachments that appear genuine. Many organisations conduct phishing awareness training for all staff, with annual refreshers to keep cyber security front of mind.

Practical training should cover what phishing emails and ransomware look like, their impact, and what staff should do if they receive suspicious emails. Early reporting of suspicious activity is critical; the sooner a breach is detected, the faster and less expensive it is to resolve.

Your IT security adviser or managed service provider can recommend appropriate training programs suited to your organisation’s specific risks.

3. Use Real-World Examples to Train Staff

One of the most effective training approaches is showing staff real examples of phishing emails or ransomware warnings they might encounter. This helps team members recognise warning signs and understand what to do if they receive a suspicious email.

Importantly, staff should feel comfortable reporting suspected breaches without fear. Early reporting significantly reduces the time and cost of incident response.

Real-World Case Study:

An employee clicked a link in an email and found a ransom note on their screen. Four of the company’s systems were encrypted, and attackers demanded payment. After negotiation, the encryption password was provided, but the company had to rebuild their entire IT infrastructure due to the breach.

Insurance Outcome: The company had cyber insurance. The total claim was $146,000, covering:

• Ransom fee: $17,000
• Cyber response and investigation costs: $18,000
• Business interruption payout: $111,000

(Real-world claim example from Emergence)

Without cyber insurance, this organisation would have faced the full $146,000 cost plus ongoing reputational damage and potential regulatory investigation.

4. Encourage Staff Feedback on Internal Systems

If company systems are too restrictive or slow, employees may bypass security controls, download unapproved applications, or use less secure workarounds. This can inadvertently introduce vulnerabilities.

Creating safe channels for staff to provide feedback on system usability helps IT teams find solutions that balance security with practicality.

5. Review Your Cyber Insurance Cover

Ransomware incidents can generate costs that exceed many organisations’ budgets. With incident costs rising annually, it’s worth reviewing your cyber insurance cover to ensure you have adequate protection.

Cyber insurance often sits outside standard business insurance policies and must be purchased separately. Coverage typically includes:

• Forensic investigation and incident response costs
• Ransom negotiation and, in some cases, ransom payment (subject to policy terms and regulatory requirements)
• System restoration and data recovery
• Business interruption (lost revenue during downtime)
• Notification and credit monitoring services for affected individuals
• Legal defence and regulatory investigation costs

For comprehensive details on ransomware coverage, claims process, and how cyber policies respond to incidents, see our Cyber Insurance Guide.

Next Steps

If you’d like to review your cyber insurance cover or discuss ransomware risk with an adviser, contact Clear Insurance on 1300 721 132, email info@clearinsurance.com.au or complete our online enquiry form. We can assess your current coverage and help ensure you have appropriate protection for your business.

Last updated: 27 August 2026