Cyber Insurance for Banking Finance and Insurance Industry
Cyber insurance for the banking finance & insurance industry offers financial protection against potential financial threats and cybercrimes. Moreover, this insurance policy protects the banking finance & insurance industry from third-party liabilities resulting from cyber-attacks leading to heavy reputational loss.

Get ₹5 crore Cyber Risk Insurance for Business @ ₹3 Lakhs*
Who Can Buy Cyber Insurance for Banking Finance and Insurance?
The industries that fall under banking finance & cyber insurance are as follow-
- Banks
- Depository Services, Private Equity, and Venture Capitalists
- Foreign Exchanges
- Insurance Companies or Brokers
- Investment, Fund, and Asset Management
- Mutual funds and Unit Trust Management
- Non-banking Financial Companies (NBFCs)
- Professional Advisory
- Stock Market Exchange & Brokers
- Tax and Auditing Consultants
Cyber Insurance for Banking Finance and Insurance: Inclusions
Cyber insurance for banking finance and insurance covers the following perils-
- Loss due to identity theft
- Loss due to unauthorized transactions and reputational injury
- Loss due to cyber extortion and cyberbullying
- Coverage for legal expenses, forensic expenses, and data restoration costs
- Loss due to malware intrusion
- Any consequential loss
Cyber Insurance for Banking Finance and Insurance: Exclusions
Cyber insurance for banking finance and insurance does not cover the following perils-
- Any physical injury, disease, sickness, temporary/permanent disability, or death
- Any damage or loss due to a lack of precautionary measures by the insured party to safeguard sensitive data
- Any consequential loss or damage suffered by a third party during the cyber attack
- Any perils that are uninsurable under the matter of law
- Any damage or loss to the insured network system due to participation, supervision, or dishonest/criminal/malicious activity
- Any claim raised due to the destruction of any tangible property
- If there is theft, burglary, loss in value, disappearance, or inaccessibility of any cryptocurrency
- No coverage for any legal proceedings that have started before the commencement of the policy term
- Loss due to dealing in securities, commodities, derivatives, federal funds, sovereign funds, currencies, foreign exchange
- Mysterious disappearance or unexplained loss
- Any loss due to several business activities, including e-trading, blogging, etc.
- Any specific perils mentioned in the cyber insurance policy
FAQs
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Q1. Does cyber insurance cover the third-party liability cost?
Ans: Yes, cyber insurance covers the third-party liability costs arising out of a cyber-event, such as defense costs, investigation costs, legal fees, civil damages, and compensation to the affected parties. -
Q2. Are banks and other financial institutions required to have cyber insurance policies?
Ans: As these institutions include financial operations and reputational risks, which further can lead to data loss, fraud, or disorder in services, so cyber insurance will be an effective way to deal with such unforeseen risks. -
Q3. What are the common types of cybercrime in financial institutions and banks?
Ans:Some common types of cybercrime in financial institutions are-- Ransomware attacks
- Identity fraud
- Hijacked emails and internet frauds