Pay on Behalf (Ransomware)
A cyber policy provision where the insurer pays covered ransomware costs directly, instead of the firm paying first and asking to be paid back.
What it means for your firm
Cyber policies handle ransomware payments in one of two ways. With pay on behalf, the insurer pays covered costs as they come due. With reimbursement, the firm pays out of pocket and then submits the loss to be paid back.
The difference is cash flow in the middle of an attack. Whether a payment is covered at all still depends on the policy terms, the insurer's consent and the law.
General definition for education only. It is not an interpretation of any policy or contract, and it is not legal advice. The wording of your own policy and contract controls. Policies and definitions vary by insurance company.
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