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The Risk Isn’t If.
It’s When.

Ransomware. Social engineering. Data theft.

Cyberattacks are no longer a tech issue – they’re a business issue. Whether you’re a fintech firm, SaaS company, life sciences innovator, or run digital infrastructure, your exposure is real.

Most attacks don’t start with a brute-force hack – they start with a mistake. A clicked link. A reused password. A missed update. Cyber insurance helps you recover when those cracks get exploited. But more than that, it gives you the people, tools, and backing to respond in real time, contain the damage, and keep your business moving.

Axis offers tailored cyber insurance backed by global insurers and a 24/7 response team. We work with clients across Canada and globally to secure what matters most: your operations, your data, and your reputation.

Real Threats. Real Claims. Real Costs.

Today’s attacks are fast, complex, and targeted. Most policies weren’t built for this.

Here’s what we’re seeing across sectors:

$1M+ losses

Due to compromised email accounts and invoice fraud in professional services.

A regional accounting firm fell prey to a business email compromise that allowed attackers to intercept client invoices and alter payment instructions. Employees unwittingly wired funds to the criminals’ account, resulting in losses well over $1 million. The scheme stalled the firm’s cash flow and put client trust at risk. Fortunately, cyber insurance proved critical – it funded an expert incident response, helped recover misdirected funds, and covered legal costs, cushioning the financial blow.

Ransomware in the mining sector

Halting operations and encrypting critical geological data.

A mid-sized mining company was crippled by a ransomware attack that encrypted mission-critical files like geological data and contracts. With core information locked up, the company had to suspend operations, facing either a hefty ransom payment or costly, weeks-long data reconstruction – both options carrying multi-million dollar impacts and potential reputational damage with partners. The downtime threatened significant revenue loss. Because the firm had robust cyber insurance, they rapidly deployed professional incident responders and negotiators, and coverage paid for data restoration, enabling the business to resume operations with minimal long-term damage.

Social engineering attacks

Tricking finance teams into sending funds to fake suppliers.

Social engineering scams are surging – they now account for over a quarter of cyber insurance claims globally. In one case, a manufacturing company’s finance manager received an urgent email appearing to be from the CEO instructing a confidential wire transfer. The email was a clever fake, and the company unwittingly transferred a six-figure sum to fraudsters before the hoax was uncovered. Here, cyber insurance made a decisive difference: the policy reimbursed the stolen funds and provided access to specialists who guided the firm in tightening its payment verification processes.

Unauthorized access

To CRMs, eSignature platforms, and cloud systems causing IP loss and legal fallout.

In another scenario, a software company discovered hackers had gained unauthorized access to its cloud-based CRM database and e-signature platform using stolen credentials. The intruders accessed sensitive records – including client names, emails, and even financial details – for thousands of customers, and even sent fraudulent documents under the company’s identity. The breach triggered a costly response effort: customer notifications, credit monitoring, and emergency IT security upgrades, all while the firm’s reputation hung in the balance. As a Chubb-insured business, the company swiftly engaged a breach response team through its cyber policy and had coverage for the notification expenses, forensic investigation, legal counsel, and liability claims – a safety net that mitigated the fallout of the incident.

How Cyber Attacks Unfold

Even the most secure-looking companies fall victim. Modern cyber attacks typically unfold in several distinct stages rather than a single, isolated event. By understanding each phase of this cyber attack chain, organizations can better prepare their defenses and response plans. The following sections outline five key stages – from the initial phishing attempt to the final extortion – explaining what happens at each step, what tactics attackers use, and why each stage matters for your business.

1. Phishing or Breach

An employee clicks a malicious link or reused password is cracked.

This is the initial intrusion stage, where attackers find a way into the company’s network or systems. Often it begins with a phishing email that tricks an employee into clicking a malicious link or opening a booby-trapped attachment. Alternatively, attackers may exploit a software vulnerability or use stolen login credentials to breach the network’s defenses. Once this first barrier is broken, the attacker gains a foothold inside your IT environment – and it only takes one unwary click to set off a major compromise. This matters because if the intruder succeeds here, the door is open for the rest of the attack to unfold.

2. Network Access

The intruder installs backdoors and gains control silently.

After the initial breach, the attacker now has access inside your network. Typically, they will establish control over a compromised machine and install hidden malware (such as a remote access tool) to maintain a persistent connection. During this phase, the attacker often tries to elevate their privileges – for example, obtaining administrator rights – so they can roam more freely across systems. They also quietly probe the internal network’s layout, looking for valuable assets and any weak security settings. This stage is critical because an intruder operating with insider access and high-level permissions can explore sensitive areas of your business largely undetected, setting the stage for deeper penetration.

3. Lateral Movement

The attacker moves inside the system, stealing or escalating access.

Now the attacker begins moving through your network, hopping from one system to another in search of sensitive data and critical systems. They use the foothold established earlier to scan for other machines, steal additional passwords or keys, and impersonate legitimate users as they expand their access. Lateral movement is a key tactic that allows the intruder to avoid detection and retain access – even if the initially compromised computer is discovered – by continuously shifting to new devices and obtaining higher privileges. This step is dangerous because it means a single breach can rapidly spread to many parts of your IT environment. In effect, the attacker can reach “crown jewel” servers or databases that were not initially compromised, all while staying under the radar.

4. Encryption or Data Theft

Files are locked or stolen; backups may be deleted.

At this stage, the attacker executes their endgame by either encrypting data, stealing data, or often both. In a ransomware scenario, the criminals deploy malware that swiftly encrypts your critical files (and sometimes even your backups), essentially locking you out of your own information. Many attackers also secretly exfiltrate (steal) copies of sensitive data – customer records, financial documents, intellectual property – before or during the encryption process. This “double extortion” tactic means they hold your data hostage and threaten to leak or sell it if their demands aren’t met. The impact of this stage is devastating: operations can grind to a halt because encrypted files are unusable, and any stolen data could expose the company to regulatory penalties, reputational damage, and significant financial loss.

5. Extortion & Business Disruption

A ransom demand arrives. Operations halt. Your reputation’s on the line.

Finally, the attackers deliver their ransom demand and extort the business. They may leave a note or contact your organization, demanding a hefty payment (usually in cryptocurrency) in exchange for the decryption keys or a promise to not publish the stolen data. Attackers often set a short deadline and might even threaten to increase the ransom or leak data on the dark web if you don’t comply. Meanwhile, your business is in crisis mode: critical systems are down, employees cannot work, and every minute of downtime is extremely costly – one analysis estimated that a large enterprise can lose nearly $8,000 per minute during an outage. This stage matters most to leadership because it’s where the attack directly hits the bottom line. The company faces the agonizing decision of whether to pay the criminals or attempt recovery on its own, all while managing customer expectations, legal obligations, and the operational fallout of the disruption.

How the Right Policy Responds

Coverage That Moves as Fast as the Threat. Cyber insurance policies can include:

Ransomware & Extortion Coverage

A ransomware attack can paralyze your operations and lock you out of your own data. This coverage helps recover lost files, pays for ransom negotiations (where legally permitted), and ensures you have experienced support coordinating restoration response.

Business Interruption & Operational Loss Recovery

Cyberattacks don’t just breach data – they disrupt business. This coverage helps replace lost income due to system downtime, supply chain interruption, or delayed transactions, keeping your business financially stable while operations are restored.

Funds Transfer Fraud & Social Engineering

When threat actors impersonate executives or vendors and trick staff into wiring funds to the wrong place, traditional crime policies often fall short. This coverage steps in to recover stolen funds and provides support to tighten internal processes against future fraud.

Data Breach Response, Including Legal, PR, & Notification Costs

If personal or confidential data is exposed, time matters. This coverage funds the legal guidance, crisis PR, notification, credit monitoring, and regulatory response services required to meet obligations and preserve your brand reputation.

Third-party Liability for Privacy Violations or IP Disputes

If a client or partner claims your company failed to protect their data or misused intellectual property, this coverage responds. It helps with defense costs, settlements, and damages stemming from alleged negligence or violations tied to a cyber event.

24/7 Incident Response & Forensic Support

When a cyberattack hits, you need expert help on call. This coverage gives you immediate access to forensic analysts, breach coaches, negotiators, and recovery teams – working around the clock to contain the damage and guide your next move.

Cloud, Network, & System Failure Coverage

When cloud platforms, network infrastructure, or third-party providers go down, the impact can ripple across your business. This coverage helps recover lost income and expenses tied to technology failures – whether caused by cyberattacks or service disruptions beyond your control.

System Outage Insurance

Not all downtime is malicious – but it can still be costly. This coverage addresses outages caused by internal errors, failed software updates, or IT misconfigurations, helping you cover losses and get back online without unnecessary delays or financial strain.

Know Your Exposure. Quote Your Coverage.

We’ll assess your exposure, review your current protection, and provide cyber insurance that fits your business – no matter the complexity.

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Top 6 Ways to Prevent a Breach

MFA Everywhere

Multi-factor authentication is the #1 defense against stolen credentials. It blocks over 99% of automated account takeover attempts. Use it for email, VPNs, cloud apps, and admin tools – anywhere a password isn’t enough.

Employee Training

Teach staff to spot phishing emails, suspicious links, and urgent financial requests. Cyberattacks often start with one click – make sure it’s not one of yours.

Patch Management

Hackers exploit known vulnerabilities in outdated software. Patch management ensures updates are applied promptly – closing those gaps. Prioritize internet-facing systems and high-risk applications.

Offline Backups

Don’t rely on one system. Store critical data in isolated, encrypted backups – offline or in cloud environments with strict access control. Test your backups regularly. If you can’t restore quickly, you don’t really have one.

EDR & Monitoring

Endpoint Detection & Response tools continuously watch for abnormal behaviour like privilege escalation, lateral movement, or file encryption. They contain breaches before they spread – buying time and minimizing damage.

Vendor & Access Controls

Limit who can access what. Many breaches start through third-party vendors or unused accounts with excessive privileges. Review user permissions often and require MFA for external access.

Risk Management Response & Support

Cyber insurance isn’t just reimbursement – it’s access to elite crisis teams the moment you need them. What happens when you file a claim?

Immediate Response

Your insurer activates breach coaches, legal teams, and forensic specialists within hours. This early mobilization ensures you’re not facing the crisis alone – and every minute saved reduces the potential scale of loss and liability.

Investigation

Experts trace the breach to identify how it happened, what systems were affected, and whether data was exfiltrated. This step is critical not only to stop the attack, but also to preserve forensic evidence, fulfill legal obligations, and harden your environment for the future.

Notification & Negotiation

Legal teams handle regulatory notifications and disclosures to clients or third parties. If ransom demands are involved, experienced negotiators may engage with attackers to reduce payment demands or buy time while restoration plans are executed.

Recovery & Restoration

Clean systems are rebuilt, backups are restored, and affected infrastructure is validated before resuming operations. The goal isn’t just to get back online – but to do it safely, with assurance that the threat has been contained.

Claim Payout

Your policy responds with financial protection across multiple fronts: business interruption losses, legal and regulatory costs, public relations support, third-party liability claims, and – when necessary – extortion payments. The right coverage turns disruption into resilience.

Get In Touch
Speak to a Specialist

We’ll assess your exposure, review your current protection, and provide cyber insurance that fits your business – no matter the complexity.

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Frequently Asked Questions & Further Insights

Healthcare is a prime target for cyberattacks, consistently topping the list of industries with the highest breach costs. According to IBM’s Cost of a Data Breach Report 2024, the healthcare sector faced an average breach cost of USD 9.7 million last year.[1] While this reflects a 10.6% decrease from 2023, the sector has remained the costliest for breaches since 2011. The stakes are incredibly high: patient safety, operational continuity, and trust all hang in the balance. This isn’t just about financial losses; it’s about the potential disruption to critical services and the compromise of sensitive patient information.

Funds Transfer Fraud involves a variety of deceptive schemes whereby a threat actor convinces an unsuspecting victim to transfer funds to another party under fraudulent circumstances. Threat actors exploit trust and complacency to manipulate victims into transferring funds electronically leading to financial losses.

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Not at all. Any business that uses email, stores data, processes payments, or relies on cloud platforms is exposed. In fact, small to mid-sized companies are often the most targeted – attackers know they’re less likely to have in-house cyber teams or mature controls in place.

Yes. Even best-in-class security can’t guarantee prevention. Cyber insurance complements your defenses by covering what happens after a breach – like legal fallout, business interruption, customer notification, or ransomware negotiation. It’s risk transfer, not a substitute for controls.

A strong cyber policy covers both first-party and third-party costs. That includes things like ransomware response, data restoration, legal and regulatory expenses, crisis PR, business downtime, and lawsuits from clients or vendors. It also gives you access to top-tier breach response teams from day one.

Cyber Trends 2025-2026

Cyber Insurance & Cyber Risk

The Risk Isn’t If. It’s When.

Real Threats. Real Claims. Real Costs.

$1M+ losses

Ransomware in the mining sector

Social engineering attacks

Unauthorized access

How Cyber Attacks Unfold

1. Phishing or Breach

2. Network Access

3. Lateral Movement

4. Encryption or Data Theft

5. Extortion & Business Disruption

How the Right Policy Responds

Coverage That Moves as Fast as the Threat. Cyber insurance policies can include:

Ransomware & Extortion Coverage

Business Interruption & Operational Loss Recovery

Funds Transfer Fraud & Social Engineering

Data Breach Response, Including Legal, PR, & Notification Costs

Third-party Liability for Privacy Violations or IP Disputes

24/7 Incident Response & Forensic Support

Cloud, Network, & System Failure Coverage

System Outage Insurance

Know Your Exposure. Quote Your Coverage.

Top 6 Ways to Prevent a Breach

MFA Everywhere

Employee Training

Patch Management

Offline Backups

EDR & Monitoring

Vendor & Access Controls

Risk Management Response & Support

Immediate Response

Investigation

Notification & Negotiation

Recovery & Restoration

Claim Payout

Get In TouchSpeak to a Specialist

Frequently Asked Questions & Further Insights

Cybersecurity in Healthcare: Safeguarding Patient Data & Trust

What Is Funds Transfer Loss Authentication Endorsement?

Isn’t cyber insurance only for tech companies or big corporations?

If I have strong IT security, do I still need cyber insurance?

What does cyber insurance actually cover?

The Risk Isn’t If.
It’s When.

Get In Touch
Speak to a Specialist