Ransomware is a type of malware designed to either encrypt files or block access to critical applications or programs until money is paid by the computer system owner. Many cyber insurance policies will cover ransomware as a peril however the extent of the coverage varies.
Read an article about ransomware here.
Related terms: Cyber Extortion, Double Extortion Ransomware, Ransomware-as-a-Service, Triple Extortion Ransomware.