Cyber Insurance

Cyber insurance provides coverage to companies whether it is a startup or a well-settled organisation against cyberattacks, and ransomware breaches caused during the policy tenure. Cyber insurance provider compensates for the financial losses caused due to online fraudulent activities related to the information technology infrastructure containing customers' confidential data such as credit/debit card details, account numbers, health records, etc.

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What is Cyber Insurance?

Cyber risk insurance policy is an emerging insurance for cyber attacks in the insurance market due to evolving technology and the increase in the 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.

Cyber Security Insurance

Why is Cyber Risk Insurance Important?

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.

What is Covered in a Cyber Insurance Policy?

Cyber liability insurance provides coverage for the following condition:

Coverage Description
Identity Theft The plan provides coverage for defence cost of any claim raise by affected party. Apart from this, the prosecution cost against 3rd party as well as the costs of photocopying of documents and cost of transportation to court.
Cyber Stalking The plan provides coverage for the incurred cost for prosecution of a criminal case against 3rd party.
Malware Attack In case of malware attack the cyber insurance provides coverage for restoration costs of the computer after the malware attack and defence cost of any raised claim by affected party for legal liability caused due to the malware.
IT Theft Loss An unauthorised cyber intrusion by third-party results into a financial loss will be covered. Apart from this, prosecution cost against 3rd part responsible for IT theft loss and any legal fees for lodging a claim against payment system operator or financial institution are covered.
Phishing Financial loss caused to the insured due to phishing act by third-party is covered and prosecution cost against a 3rd party is also covered.
Email Spoofing Financial loss caused to the insured due to email spoofing by third-party along with the prosecution cost if you file a case against 3rd party.
Media Liability Claims Defence cost of claim made by 3rd party against insured, prosecution cost for wrongful media act as well as photocopying of documents and cost of transportation to court are covered.
Cyber Extortion The cyber liability insurance covers the cost incurred due to cyber extortion as well as prosecution cost against 3rd party.
Privacy & Data Breach by 3rd Party Legal fees incurred by the insured in case of damages caused due to privacy and data breach is covered.

What does Cyber Insurance Not Cover?

Cyber insurance does not provide coverage for the following:

  • Bodily injury, diseases, death or damage to any tangible item is not covered
  • Electric disturbance, mechanical failure, breakdown of any kind or media failure that led to any kind of loss
  • Any willful or fraudulent act of any law, rules or regulation by an insured
  • Damages caused due to negligence or lack of precautions to safeguard information such as credit and debit cards, bank accounts, internet connections, etc.
  • Deliberately ignoring any knowledge or circumstances that may become a basis of a claim
  • Ongoing legal proceedings before the policy was purchased
  • Unexplained loss, or any loss due to a government order
  • Losses due to participating in any malicious or dishonest activity
  • Breach of trade secrets, trademarks, registered patents, actual or alleged plagiarism, copyrights or other intellectual property
  • Consequential loss or damage is not covered, including the loss suffered by any third party
  • Any legally uninsurable matter
  • Loss in value, theft or disappearance of cryptocurrency is not covered
  • Loss of any tangible property
  • Purchase of sovereign funds, dealing in securities, federal fund, foreign exchange, currencies and commodities are not covered

Who Needs Cybersecurity Insurance?

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 attacks can lead to loss of customers and sales. Similarly, companies that store customer information on their websites can purchase and get cyber coverage.

How to Raise a Claim Under Cyber Insurance?

Follow the below-mentioned steps to raise a claim under cyber insurance:

Step 1: Claim intimation: Insured need to notify the insurer as soon as they become aware of any cyber incident. Some insurers have tie-ups with third-party cyber security service providers to raise the claim.

Step 2: Investigator is assigned: An investigator is assigned to the incident analysis including severity and a temporary resolution plan is chalked out. Turn around time for this is 4-5 hours tentatively. 

Step 3: Cyber Expert is Hired: If the incident is severe a cyber expert is hired to do the incident analysis. This cannot be done by the in-house cyber experts to keep transparency and avoid biasedness.

Step 4: Internal liaisoning: All concerned parties engage in a discussion on the resolution including the insured. Then the insurer takes policyholder's 2nd opinion on potential costing for the loss sustained by the insured. If a cost-effective option is available, the insurer takes it. At this point, the final plan of action is drawn.

Step 5: All details are re-reported to the claiming team. The claiming team reviews all the details and considers it for a final approval post which the expense is paid out.

NOTE: It is the responsibility of the insured to not withhold any information which the insurer may deem relevant to be shared for a claim. Failure to do so may result in denial of the claim or delay.

How to Choose Cybersecurity Insurance & How Much Does It Cost?

Cybersecurity insurance is an important investment for any company looking to protect itself from the risks associated with cyber-attacks. To qualify, organizations must pass inspections by IRDAI and provide documentation about their security measures that meets government standards in order to receive coverage. 

Once the security audit is completed, the insurer will tell about the insurance coverage the company is eligible 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.

How to Renew Cyber Insurance?

To renew your cyber security insurance coverage, follow the below-mentioned steps.

Step 1: Visit the Policybazaar Insurance Brokers Private Limited website.

Step 2: Fill in your policy number to access your account.

Step 3: Now locate the “Renew” button on the website page.

Step 4: You can also add or remove any add-on as per your requirement before renewing your cyber insurance plan.

Step 5: The premium amount will fluctuate as per your addition or removal of the add-on.

Step 6: Then click on the “Renew” button.

Step 7: Now you can make the payment using debit/credit card, UPI or net banking as per your convenience.

Step 8: Once the payment is completed, the insurer will send the updated policy documents to your registered email ID and a hard copy to your registered address.

To avoid the cancellation of the policy, make sure to renew your cyber security insurance on time.

Tips to Enhance Cyber Security

Mentioned below are some of the tips to enhance cyber security and effectively prevent cyber risks under cyber crime insurance:

  • Follow effective cyber security measures. Instantaneously respond to threats and stop it then and there with an appropriate anti-malware.
  • Allocate cyber insurance costs in your company’s budget.
  • Enhance cyber security expertise and take measures to bolster security.
  • Ensure security and productivity by providing employees with devices that they know how to operate and function.
  • Boost security measures with an adequate cyber insurance policy to ensure smooth business operations.

Cyber Insurance: FAQs

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Cyber Insurance News

Payment Gateway Company Reports Massive ₹16,180 Crore Cyber Theft
Payment Gateway Company Reports Massive ₹16,180 Crore Cyber Theft
In a startling revelation, the Thane Police have exposed a massive cyber heist, with cybercriminals pilfering an astonishing ₹16,180 crore. This...Read more
Cybercriminals Target Former Union Minister Dayanidhi Maran's Savings...
Cybercriminals Target Former Union Minister Dayanidhi Maran's Savings...
In a concerning development, cybercriminals managed to siphon off ₹99,999 from the personal savings account of Dayanidhi Maran, the former Union...Read more
Mumbai Police Nab Four Cyber Fraudsters in Extensive 22-Day Operation
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In a 22-day operation spanning four states, including Uttar Pradesh, Rajasthan, Delhi and Madhya Pradesh, a Mumbai Police task force comprising seven...Read more
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India Grapples with Mounting Cybersecurity Risks, According to Palo...
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Pune-Based Engineering Supplies Firm Loses Over 22 Lakh in Cyber Scam
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Cyber Insurance Articles
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Policybazaar for Business - Cyber Insurance - Customer Reviews
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Based on 47 reviews
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Based on 47 reviews
12 users
34 users
1 users
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4.3 October 11, 2022
Aarti Singh
Knowledegable Team
The representatives at PolicyBazaar were knowledgeable, patient and genuinely committed to helping me find the best insurance policy for my requirements. They took the time to answer all my questions and provide valuable guidance, ensuring that I had a thorough understanding of the coverage details and terms. THANKS.
4.3 October 06, 2022
Quick And Hassle Free
After seeing a rise in cyber attacks in many of the companies, i decided to purchase a cyber insurance policy for my start up. I went on the Policy Bazaar website and learned about the coverage in detail and purchased it from their website only. It was quick and hassle-free purchase.
4.5 October 04, 2022
Paperless Process
We bought the contractual liability insurance from policybazaar and received the best overall package. The process was paperless as we applied for insurance online and the support was amazing.
4.5 October 03, 2022
Extensive Coverage
We thoroughly checked all the benefits and features and decided to buy a contractual liability policy from Policybazaar. It provides all the necessary features to safeguard our business against any loss.
4.5 October 02, 2022
Easy To Buy
It was easy to buy insurance from Policybazaar and customer support was also amazing to clear all the doubts. Contractual liability insurance is essential for my business and I could not get a better deal than this.
4.5 October 01, 2022
Easy Plan Comparision
An ideal Contractual Liability Insurance policy purchased to protect our business that we ecounter in our everyday operations. Policybazaar offers a platform to compare multiple plans.
4.5 September 30, 2022
No Broker And Paper Work
Great experience at Policybazaar. We did not know that buying Contractual Liability Insurance could be that easy. Also there is no broker and paperwork.
4.8 September 29, 2022
Perfect Insurance Coverage
I purchased Contractual Liability Insurance from Policybazaar and the coverage they provided is perfect to keep my hardware business safe various unforeseen instances.
New Delhi
4.5 March 18, 2022
Cloud Storage Cover
I wanted to purchase a cyber insurance policy could provide coverage for the data stored in cloud network. I went on the Policybazaar website and look up for plans that would provide me with this coverage. I compared different plans and in a matter of minutes i found the right cyber insurance plan that would fit my requirement.
4.5 March 17, 2022
Good User Interface
I was looking for a cyber insurance policy online. After looking for the insurance plan online I landed on the Policybazaar website. Trust me, the user interface of the website is so good that i was able to locate the cyber insurance plan and purchase it in not more than 10 minutes. Thanks Policybazaar.

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