Bricking coverage

Bricking is when a business’s computer, server, or other essential device is rendered useless, essentially making it “as useful as a brick." A device can be bricked accidentally, such as by installing incompatible software, or intentionally, such as permanent denial of service (PDoS) attacks, which use malware to permanently disable devices.

When a company’s systems are bricked, the business can suffer a complete loss of hardware functionality, disrupted operations, extended downtime, high recovery costs, and the loss of valuable data.

Without bricking coverage, small business owners face the full cost of replacing expensive equipment, hiring specialists to restore systems, and recovering lost revenue—all while trying to bring their business back from a cyberattack.

There are two types of device bricking:

Soft bricking is when a device malfunctions, such as a boot loop, but can be recovered with software remedies, such as a factory reset or reflashing the firmware.

Hard bricking occurs when a device’s firmware is severely corrupted or when a hardware issue renders the device completely inoperable. Hard-bricked devices typically can’t be fixed.

Cybercriminals can use social engineering attacks, malicious downloads, and other cyber incidents to infect devices with malware. These cyberattacks can corrupt or delete system files, destroy operating systems, and wipe entire hard drives.

For example, an e-commerce retail employee clicks on a malicious email link, which allows malware to corrupt the site’s point-of-sale (POS) system, rendering the system inoperable.

Hackers can use ransomware to encrypt critical data and lock access to crucial systems, causing permanent damage to hardware that makes a device useless. In some cases, they’ll use ransomware for cyber extortion, threatening to brick essential equipment if the business owner doesn’t pay a specified ransom.

For example, cybercriminals demand that a healthcare clinic pay a ransom, or they’ll corrupt their servers, making the devices unusable and causing the business to lose crucial customer data.

Cybercriminals can inject malicious code into legitimate software updates, compromised firmware, or physical hardware components before a device is even sold. These attacks typically aim to disrupt operations and make devices unrecoverable.

For example, a software developer’s server is compromised by hackers, allowing them to insert malicious code into the developer’s legitimate software update. This code spreads to hundreds of customers’ devices, destroying invaluable data and making their computers inoperable.

Bricking can also be caused by accidents that lead to permanent damage, such as installing the wrong firmware on a device, or having a critical software update interrupted by a power outage or user error.

For example, a management consultant’s office has a power outage during a Windows update, corrupting the operating systems and causing the machines to have Blue Screens of Death (BSOD) and system instability.

Although commercial property insurance covers damaged business property, most policies won’t cover bricked hardware because corrupted firmware isn’t typically considered tangible damage.

And, while some cyber liability insurance policies include limited bricking coverage, most insurance providers require you to purchase bricking coverage as an endorsement to a cyber policy. This crucial add-on fills the coverage gap between cyber and property insurance policies so that you’re not stuck with significant losses after a bricking incident.

Because many small businesses lack adequate or any cybersecurity protocols, they’ve become big targets for cyber threats. Hackers send 3.4 billion phishing emails every day, primarily to smaller companies, and 43% of data breaches involve small businesses.

Having cyber insurance coverage is key to helping your business recover from a cyberattack. For example, this policy can include business interruption coverage, which kicks in after a waiting period to cover operating expenses and lost revenue when a business’s computer systems are down.

If your business suffers a cyber event that permanently disables hardware, the financial losses could be devastating. That’s why bricking coverage is a crucial add-on to a cyber insurance policy.

Bring in IT experts: Contact your company’s internal IT team or an external cybersecurity firm to begin the recovery process.

Get free quotes for crisis management insurance from top-rated providers by filling out our easy online application. You can speak with a licensed insurance agent if you have questions about which types of insurance policies meet your small business needs, or if you want to add on specialized coverages such as bricking insurance.

Once you find the right policies for your small business, you can begin coverage in less than 24 hours and get a certificate of insurance (COI) for your small business.