- Cyber Insurance
- What is Cyber Security Insurance?
- Features and Benefits of Cyber Insurance
- Why Cyber Risk Insurance is Important?
Cybersecurity insurance also known as cyber insurance or cyber liability insurance is a contract that an organization can purchase to help decrease the financial risks related to online business. The insured can get cyber coverage by paying monthly, quarterly, half-yearly and yearly premiums to the insurance company.Read more
Quick & Hassle free
*Premium varies on the basis of Occupancy, Business Activity & Coverage Type
Cybersecurity insurance is an emerging insurance plan in the insurance market due to evolving technology and the increase in usage of online services by almost every organization or business. Given the fluctuating nature of cyber risks in the market, the insured can enhance the coverage as per their requirements.
However, cybersecurity insurance has its origins in errors and omissions insurance which is a separate kind of insurance plan that provides coverage against any faults & defects in the services an organization provides. Some cyber insurance policies offer different E&O coverage and many insurance companies offer these plans separately to avoid any kind of confusion regarding coverage.
The main features and benefits of a cyber insurance policy are mentioned below:
Cyber risk insurance becomes a necessity as various organizations rely on Internet-based technology to reach out to their prospective customers and pursue their digital marketing goals. All digital tools expose these organizations to the risk of cyber threats.
Cyber insurance for corporates protects the company from the loss caused to first-party and third-party liabilities resulting from cyber-attacks and leading to financial & reputational losses. It offers insurance protection to corporations against cyber extortion, unauthorized access, data breaches, etc. to secure sensitive customer personal information and employee data.
Since data security is one of the primary responsibilities of companies as they have access to their customers’/users’ confidential information. It becomes a priority for the Small and mid-size companies that are struggling to grow in the market should purchase this policy to protect their customer information.
For example, Sony’s PlayStation Network was breached in 2011. In this cyber breach, personally identifiable information of over 77 million user account were compromised. After this breach, PlayStation users were not able to access the online services and it lasted for 23 days. Sony had to face a loss of around $171 million and since Sony did not have cyber insurance in place they could not get any kind of coverage. The issue was taken to the court and the court ruled out that the insurance plan that Sony had only covered the physical property damage only.
Comprehensive Liability Insurance
Contractor's All Risk Policy
Contractual Liability Insurance
Corona Group Insurance
D&O Liability Insurance
Employee Wellness Programs
Erection All Risk Insurance
E & O Insurance
Group Health Insurance
Best Group Health Insurance
Group Personal Accident Insurance
Group Travel Insurance
Group Life Term Insurance
Contractor's Plant & Machinery
Professional Indemnity Insurance
Public Liability Insurance
Workmen Compensation Policy
Here are the following cyber insurance coverage provided under cyber insurance in case of any cyber event:
Cyber insurance does not provide cover for the following:
Purchase of sovereign funds, dealing in securities, federal fund, foreign exchange, currencies and commodities are not covered
Businesses and organizations that have data stored online whether it is their customer’s data such as credit/debit card details, PII, contact numbers, email IDs or their own confidential data are suggested to purchase cyber liability insurance.
A cyber insurance plan is beneficial for e-commerce businesses as cyber breaches can cause loss of customers and sales. Similarly, companies that store customer information on their websites can purchase and benefit from cyber coverage.
Follow the below-mentioned steps to raise a claim under cyber insurance:
Cybersecurity insurance cost is defined by the organization’s annual revenue. To be able to qualify for the coverage, the organization must pass the security audit performed by the insurance company’s inspectors and provide the required documents with an assessment tool that is offered by the Insurance Regulatory & Development Authority of India (IRDAI).
Once the security audit is completed, the insurer will tell about the insurance coverage the company is elgible for along with the premium amount that the organization will have to pay for it. Since the concept of cyber insurance is new and companies have recently started adopting it, the premium amount varies from one company to another.
To renew your cyber security insurance coverage, follow the below-mentioned steps.
To avoid the cancellation of the policy, make sure to renew your cyber security insurance on time.
Mentioned below are some of the tips to enhance cyber security and effectively prevent cyber risks under cyber crime insurance:
Ans: The Policy can be bought by anyone who is 18 years old or above and can buy for self or own organization.
Ans: To get better coverage in case of a cyber breach, it is recommended by the insurers to use effective cyber security measures because at the time of purchasing the cyber insurance policy. The cyber insurance company sends some of their inspectors to inspect the company and check if your company takes necessary precautions to safeguard your online data from the hackers online.
Ans: Yes, cyber insurance does provide cover for copyright infringement or trademark infringement.
Ans: Yes, in case the date of the company’s customer gets leaked on the internet, then the insurer will provide cover for it.
Ans: Cyber insurance provides coverage against Data breaches, social security number, credit card numbers, sensitive customer information, health records, account numbers, etc.
Ans: Privacy risk, operational risk, service risk, and security risks are those four prominent risks that cyber liability insurance covers.
Ans: Cybersecurity insurance is an important insurance policy. It is important because it helps organizatiosn to comply with the regulations that want a business to notify customers of the company about the cyber breach including PII. The insurance plan provides coverage for legal fees as well.
Ans: Yes, There is an insurance policy for cyber-attacks that is known as cyber security insurance. It protects your business against losses caused due to cyber attacks.
Ans: Now a days, companies depend on data in order to operate in this digital world. The data can include sensitive information related to customers and vendors. If you do not protect it by taking necessary online security measures, cybercriminals can attack your data and it can lead to enormous cyber liability claims.
Ans: Cyber insurance premiums cannot depend upon many factors such as the company’s services, type of data stored online, PII and PHI records, network security, privacy policies, annual gross revenue, how much exposed a company is and more.
Ans: Cyber insurance companies started offering first-party coverage in the mid-2000s.
Ans: The better security measures a company takes, the lower the premium amount for the opted cyber insurance plan will be.
16 Jun 2022If you are an employee then you must be aware of the hybrid...
13 Jun 2022With cyber-attacks constantly evolving, it only makes sense that...
08 Jun 2022Recently we have seen the Russia-Ukraine conflict and many...
26 May 2022Undoubtedly, there have been endless benefits to the internet...
11 May 2022As per the report of Palo Alto Networks, ransomware attacks on...