Criminal activities have anintense effect on every section of society. How much damage they can do to a person depends on the exact nature of the crime. For example, if a cab driver has his car stolen and wrecked, his entire livelihood is in danger. Cybercrime is a type of crime that affects everyone today. Since most of us live in the digital realm for most of our lives, almost everyone is at risk of falling victim to cybercrime.
To protect against cybercrime, people have been opting for cybersecurity insurance for some time now. It is a type of general insurance that protects the policyholder from cybercrime and digital scams. This protects the policyholder from the dangers of cyber-attacks such as email spoofing, information theft, and cyber hacking, whether browsing the Internet for personal use or business.
Although there are many cyber insurance plans available in the market, experts say to choose the ones that are specifically designed to cover individuals against potential cyber threats and risks. Hence, you should know what the plan is and the benefits you should expect in them.
What is cyber insurance?
A cyber insurance policy covers the costs, fees, and legal costs of cybercrime. Cyber-crime includes involves misuse or theft of personal or business information whether it belongs to clients or employees.The most common example of cyber-crime is unauthorized access of private information. This is where the role of cyber risk insurance comes into play.
Data protection is one of the primary responsibilities of companies because they have access to the private and confidential information of their customers/users. Such companies are required to have cyber insurance in India.* Standard T&C Apply
What is covered under cyber insurance?
The coverage of a cyber insurance policy depends on the person, entity, or event that may cause a claim. Cyber insurance coverage includes protection for:
First-party cyber liability insurance
- Transferred funds or assets belonging to an online company.
- Any fraudulent activity or computer system violation through the online network.
- Customer’s transfer of funds online after e-communication with customer care.
- Any fraudulent communication that the company is legally liable for.
- Extortion payments, including the costs of professional negotiators, payments made to extortionists, any fund transfers, etc.
- Any online vandalism committed by a company employee.
- Interruption to online business at any additional cost.
- Any financial loss due to the crisis, including the cost of public relations consultants.
* Standard T&C Apply
Third party cyber responsibilities
- Damage due to system security failure, and any liability that may result in unauthorized access or leakage of any customer information on the Internet
- Copyright Infringement, Trademark Infringement, Liability for Content as well as Claim for Property
- Defamation, reputational liability, invasion of privacy, etc.
- A claim arising out of a system failure that has caused damage to third-party systems.
- Weak access responsibility, including claims, due to a security system failure that caused the system to become unavailable to customers.
- The cost of justifying any claim brought by the government.
* Standard T&C Apply
Now that you’re familiar with the coverage and benefits of a cyber insurance policy, it’s important to remember that purchasing the policy isn’t enough; you’ll also need to remember the insurance renewal date so that you can renewyour policy on time to stay protected from cyber-attacks.Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.