What is cyber insurance?
Cyber insurance is a type of insurance that protects organizations from the effects of cyber attacks. After a cyber attack / breach, it helps an organization to mitigate risk exposure by fixing expenses. In other words, cyber insurance is intended to cover costs, expenses and legal fees related to cyber attacks that occur after an organization is hacked, as well as the theft or loss of customer / employee information.
A typical cybersecurity insurance policy, also known as cyber risk insurance, is designed to protect businesses against cybercrime such as ransomware, spyware, and distributed denial of service (DDoS) attacks. ). The costs of privacy investigations or litigation following an assault could also be included in the claims.
What is covered by cyber insurance?
Coverage protects the insured’s bank account, credit card, debit card or mobile wallet if money is stolen as a result of a cyber event / hack of the bank account, credit card, of the insured’s debit card or mobile wallet by a third party. It also covers defense costs in the event of recourse against the insured by a third party victim of identity theft.
- The policy covers defense costs for claims brought against the insured by a third party or an affected party as a result of the hack of the insured’s social media account.
- It covers the costs of prosecuting the stalker. Data recovery costs related to malware are covered by coverage.
- It also protects against phishing attacks. The policy protects against fraudulent use of a bank account, credit card, debit card or e-wallet by a third party to make online purchases.
- The policy covers financial losses suffered as a result of a spoofed email attack, as well as the cost of prosecuting the culprits.
- It covers defense costs in the event of defamation / invasion of privacy claims brought by third parties as a result of the publication / distribution by the insured of any digital multimedia content.
- It protects against extortion losses resulting from the danger of cyber extortion and reimburses the costs of prosecuting criminals.
- Due to the high demand for new cyber insurance products due to the ever changing nature of cyber attacks and new challenges, general insurers should continue to strive to create tailor-made products based on the standard policy formulations and recommendations offered. in the text.
- Insurers should achieve the above objectives in a manner that is fair and useful to policyholders.
What is not covered?
Prior notification of a fact or circumstance which has been accepted by the previous insurer is excluded.
Exclusions with full divisibility: The knowledge of an Insured is not imputed to another, and only the knowledge of the Managing Director, the Financial Director or the Deputy Managing Director of the Organization is imputed to the Organization.
A fraudulent act or a willful violation of such law or regulation by an insured.
Mechanical failure, progressive deterioration, electrical disturbance, failure or media failure, or any malfunction are all examples of mechanical failure.
Should You Buy Cyber Insurance In India?
Business executives are increasingly concerned about hackers and other data breaches, cyber intrusions and data breaches seemingly dominating the media on a daily basis. This global threat is compounded for CEOs of accounting firms, who face the dual challenge of not only preserving their own information, such as a business, but also protecting their clients’ information.
Any breach of your company’s technology security can cost you money and, worse yet, lead to mental distress. Therefore, it is always a good idea to cover your business with the best liability insurance policies in order to deal with ramifications that might arise as a result of technological security difficulties.