The technique of protecting computers, servers, mobile devices, electronic systems, networks, and data against hostile intrusions is known as cyber security. It’s also known as electronic information security or information technology security.

Insurance for Cyber Security

Cyber security insurance reimburses businesses for expenses, fees, and legal costs incurred as a result of cyber intrusions. It also involves the loss or theft of client/employee information as a result of an organization’s data being hacked. A frequent example of a security breach is unauthorised access. This is where cyber risk insurance enters the picture. Companies have access to their customers’/users’ private and personal information; hence data security is one of their key duties. For such businesses, cyber insurance in India is an essential.

Features of the Cyber Insurance Policy

  1. The coverage protects you if your money are stolen as a result of a cyber incident or a third-party hacking of your bank account, credit card, debit card, or mobile wallet.
  2. It also covers the costs of defending claims brought against the insured by a third party who has been a victim of identity theft fraud.
  3. The insurance covers defence expenses for claims brought by a third party or an affected party against the insured as a result of the insured’s hacked social media account.
  4. It helps pay for the stalker’s legal fees.
  5. Data restoration costs due to malware are covered by the coverage.
  6. It also protects you from phishing.
  7. According to the committee report, it protects against unauthorised third-party usage of a bank account, credit card, debit card, or e-wallet to make online transactions.
  8. It covers defence costs in defamation/invasion of privacy claims brought by third parties as a result of the insured’s publication/broadcasting of digital media content.

What is a Cyber Attack?

As per IRDAI, the fraudulent, malicious or dishonest:

As per a report by Nasscom’s Data Security Council of India (DSCI) in 2019, India witnessed a second-highest number of cyber attacks worldwide between 2016 to 2018. 

How much do you need?

The cover size you need will depend on how much you have to lose, be it money, data, or bank account details. Combine all of these and then arrive at a number. If you are at high risk because you are actively engaged in monetary transactions online, you will require a higher cover.

What is the significance of Cyber Risk Insurance?

As more businesses rely on Internet-based technologies to reach out to potential clients and achieve their digital marketing goals, cyber risk insurance becomes a need. All digital instruments put these businesses at danger of cyber attacks.

Top Cyber Risk Scenarios

  1. Unauthorized access to financial information.
  2. Theft of identity.
  3. Data loss as a result of a technological problem.
  4. Unauthorized disclosure of personal information.

Tips to enhance Cyber Security

• Respond to dangers immediately and stop them with an anti-malware solution.

• Budget for cyber insurance in your company’s budget.

• Improve cyber security knowledge and take steps to improve security.

• Ensure security and productivity by equipping staff with gadgets that they understand how to use.

• Ensure efficient business operations by bolstering security measures with a sufficient cyber insurance coverage.

What is covered under Cyber Insurance?

Unauthorized Transactions: If you lose money as a result of a transaction that was not authorised by you, the plan will compensate you. 

Expenses of Data Restoration: If a cyber threat, extortion, or other attack on your computer system is notified within 30 days, the insurance will reimburse the costs of data restoration.

Identity Theft: The coverage covers identity theftrelated damages such as missed salaries, costs of refiling rejected loan applications, costs of not producing affidavits, and other legal and financial paperwork charges, among other things.

Cyber Extortion: The plan will cover costs associated with preventing a threat, recovering data, conducting forensics, and employing an IT security specialist to manage the issue.

Legal Expenses: Up to the stated amount, legal consultation expenses, expenditures incurred as a result of a false criminal accusation against your organisation, or costs spent while defending or pursuing legal actions are all covered.

Cyberbullying: In the event of harassment, intimidation, invasion of privacy, or defamation of character, the insurer will pay the cost of a psychologist consultation, as well as the costs of rest and recuperation, as well as the costs of temporary relocation if necessary.

Losses incurred as a result of missing an EMI payment on the loan, as well as penalties levied by any financial institution for failing to maintain a minimum balance, will be compensated.

Malware Intrusions: In case of data loss or damage or any lost wages due to corruption, the insurer will cover the costs of restoring data.

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