Ransomware Day One: Maximizing Insurance Recovery
A ransomware attack demands immediate action, but the steps taken in the first 24 hours can make or break an insurance claim. Industry experts warn that hasty remediation efforts often destroy critical evidence needed to secure maximum coverage. This guide outlines the essential early-stage protocols that preserve forensic proof, protect legal privilege, and position organizations for optimal insurance recovery.
Maintain Forensic Proof Before Remediation
In the first 24 hours of a ransomware incident, the single most important action to improve cyber-insurance outcomes is formally preserving evidence before any remediation begins.
As Principal and Senior IT Architect at GO Technology Group, I have seen claims delayed or challenged not because coverage was lacking, but because early response steps unintentionally altered forensic evidence. Before rebuilding systems, wiping encrypted endpoints, or resetting credentials at scale, we initiate a documented evidence-preservation step that aligns IT, legal counsel, and the insurer.
The most effective phrasing we use sent in writing is:
"All remediation actions are paused pending forensic evidence preservation. System images, logs, and access records are being secured for legal review and insurance assessment."
This statement establishes intent, preserves chain of custody, and demonstrates compliance with policy conditions. In practice, it reduces insurer follow-ups and accelerates claim resolution. In ransomware response, speed matters; but disciplined sequencing is what protects coverage.
Declare Event And Secure Artifacts
In the first 24 hours, the single most important action is to formally declare the incident and preserve evidence before any remediation begins. That early step protects coverage by ensuring the insurer can clearly see what happened, when it happened, and that no actions were taken that could invalidate the policy.
We advise clients to issue a written incident notification stating that a suspected ransomware event is under investigation, that systems are being contained, and that forensic evidence is being preserved. In a recent case, this included securing logs, memory captures, and affected endpoints before recovery began, along with a clear incident timeline documented by our SOC.
The practical takeaway is simple: slow down before you clean up. Prompt notification and disciplined evidence preservation give insurers confidence in the claim and significantly improve the chances of full and timely recovery.
Notify Your Carrier First
In the first 24 hours of a ransomware incident, the single best action for maximizing cyber insurance coverage and claim recovery is: immediately notify your cyber insurer or broker.
Why? Policies mandate prompt notice (often within hours) as a coverage condition. Delay risks denial. Even on mere suspicion (no confirmation required), early notification unlocks insurer resources including: pre-approved forensics, negotiators, legal counsel and they often fully fund the initial investigation.
Evidence-preservation step I've used:
Client had suspicious activity, no ransom yet. We notified immediately. I advised:
"Preserve logs/evidence first and then isolate/remediate. Do not alter/delete until the insurer's team approves."
Result: Carrier paid 100% of forensics, proved no exfiltration, which avoided costly notifications to thousands and reputational damage.
Counter-example (costly mistake):
Mid-sized client called their trusted MSP first. MSP restored operations in 3 days, but wasn't on the insurer's panel. Client notified late and ~$80K in fees denied outright (policy required panel vendors or pre-approval). Rest of claim covered after switching, but out-of-pocket hit and delays hurt.
Key lessons:
Notify first, then use panel vendors (or get approval for) non-panel vendors as many insurers let you add your MSP or preferred IR team pre-policy or mid-claim.
Some cyber insurers even waive deductibles ($25K+) for using their teams.
TLDR: Call your insurer immediately.
Tips:
Print your policy; keep it with your IR plan (off-network).
Never store it digitally as "cyber insurance policy.pdf" as attackers target limits to demand exact coverage amounts. Ransom payout often exhausts limits and forensics & restoration costs will be out of pocket.
Engage Breach Counsel To Protect Privilege
In the first 24 hours, the most important thing is making sure the incident and overall response are being led by breach counsel. Whether that's through an existing retainer or an immediate engagement, preserving privilege is critical. Without it, early statements, timelines, and technical conclusions can quickly become discoverable and later used to challenge coverage, scope, or causation. Once privilege is lost, it can't be recreated, and coverage discussions often shift from what's covered to what was unknowingly waived.
One phrasing I've used early in incidents is a written attestation noting that affected systems are being stabilized for forensic preservation prior to remediation. That distinction matters because it shows intent to preserve evidence, and not rush recovery at the expense of the record. Having worked in e-discovery and within a law firm, I've seen claims succeed or fail based almost entirely on whether forensic integrity was maintained early.
