Last week Delaware County, Pennsylvania, joined a growing list of entities struck by ransomware. The Philadelphia suburb announced that it paid $500,000 to regain full access to its network after hackers encrypted police reports, payroll and expense databases and other files. However, the ransom payment was covered by the municipality's insurance, according to local media.

Ransomware payment coverage is fairly common in most cybersecurity insurance polices as more organizations, including municipalities and law firms  fall victim to cyberattacks. But some observers argue such payments are incentivizing hackers and creating more ransomware opportunities.

Some lawyers, for instance, believe cyber insurance payments are placing a larger ransomware target on businesses' backs.