From Pandemic to Cyber War, Clear Policy Wording is key for Insurers

Amid the Covid-19 Pandemic, most of the Tech firm employees were working from home just like other industries. The advantage of this state was taken and utilized by cyber hackers at its most significant level. The hackers became rampant and started infringing on the device by infiltrating and stealing data. As a result, the cases of cyber crimes, such as hacking and ransomware showed an instant increase, and the number of claims for D&O and cyber insurance policies increased.

Read more
Get ₹5 Cr Cover starting at ₹4,60,000*
marine

Get right expert advice

Hassle free policy

Speedy Claims

Get Free Access to Report: Cyber Breaches in Industry

Fast-track your search with instant quotes from top insurers

Don't Gamble with Cybersecurity - Insure Your Business Now!

Step 1/2

Don't Gamble with Cybersecurity - Insure Your Business Now!

secure-icon We don't spam
Are you buying the policy for?
Get Updates on WhatsApp
Check Plans for Free

Don't Gamble with Cybersecurity - Insure Your Business Now!

Step 2/2
Fast-track your search with instant quotes from top insurers
Expert advice

Buy right

Instant policy

Quick & Hassle free

Dedicated team

Speedy Claims

Get Free Access to Report: Cyber Breaches in Industry

Clear Cyber Insurance Policy Wordings

Clarity in terms of policy wordings mentioning the cyber insurance term and conditions helps both the insurer and the insured.

If the insured has an understanding of the policy wordings then it is helpful at the time of raising a claim and during claim rejections. Further, it is crucial to have clear policy wordings to make it precise and unambiguous for both the parties i.e. the policyholder and the insurance provider. In addition, the insurer can explain the claim rejection for unnecessary liabilities as per the insurance contract, if the claimant already has some knowledge.

Why is Clear Policy Wording Important?

Due to the Covid-19 pandemic and the Russia-Ukraine war, the apprehension of cyber attacks is at its peak. Indian companies have become the soft target of cyber attacks. The ransomware attacks have made Indian firms endeavor to survive through these threats and broken the backbone of their backup.

As a result, Indian insurance companies have also increased the premium prices of cyber insurance policies. They have made several deductions in the cyber insurance policy coverage to reduce the loss ratio incurred since the Covid-19 pandemic and lockdown.

The insurance holders also raised several objections against the deduction of claims and rising cyber insurance policy premiums. They even felt cheated by the insurance companies and demanded more coverage due to the hike in cyber threats. In addition, the companies providing cyber insurance policies stepped down from covering ransomware attacks.

However, several terms and conditions violated the coverage policies written down in cyber insurance policies either expressly or impliedly. Hence, under these circumstances, it becomes crucial for the insurer and the insured to embrace clear policy wording to avoid future wars and cyber attacks.

Let us understand why clear policy wording is crucial for the insurer and insured and how it will be a path forward in dealing with concern about the future.

How will Clear Policy Wording help in Dealing with future Claims?

There have been several stances where the insurer has regretfully stated to the insured how the company is not bound to pay for certain losses. Insurance companies are inclined to provide business interruption coverage during Covid-19.

Hence, in the absence of clear policy wordings under a cyber insurance policy, the insured and insurer sometimes undergo several issues pertaining to claim settlement. Therefore, policy wordings should have simple language to ensure that the buyers have a proper understanding of policy inclusions, exclusions, premiums, documentation, claims, etc.

Conclusion

Clear policy wording eliminates the ambiguities and disputes, and provides the preferable guidelines for the insured and the insurer while settling the claim of the cyber insurance policy. Therefore, it is vital for both parties to pen down these clauses before entering into the cyber insurance policy contract.

Written By: PolicyBazaar - Updated: 19 January 2023
Cyber Insurance Companies

Now help your friend get Business Insurance

Your referral is greatly appreciated!

Our team will reach out to your friend soon to help with their business insurance requirements.

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
Mumbai Police Nab Four Cyber Fraudsters in Extensive 22-Day Operation
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
India Grapples with Mounting Cybersecurity Risks, According to Palo...
India Grapples with Mounting Cybersecurity Risks, According to Palo...
India is confronting a significant threat of cyberattacks aimed at its critical infrastructure, public sector, and essential services, as per a report...Read more
Pune-Based Engineering Supplies Firm Loses Over 22 Lakh in Cyber Scam
Pune-Based Engineering Supplies Firm Loses Over 22 Lakh in Cyber Scam
Pune City police uncovered a suspected 'man-in-the-middle' cyber attack that cost a Pune-based engineering supplies firm more than 24,000 Euros...Read more
Cyber Insurance Articles
As per the Indian Computer Emergency Response Team, 12.67 lakh cyber-attacks were registered by November 2022...Read more
21 Mar 2023 by Policybazaar 10798 Views
We live in the digital era. Now, almost everything is possible online as every other organization is going digital...Read more
12 Apr 2022 by Policybazaar 11091 Views
Every shop owner must put in extra efforts to make their retail store as safe as possible. To create a secure...Read more
29 Apr 2022 by Policybazaar 5867 Views
The cyber risks have increased after the outbreak of Covid-19. One of the main reasons behind the increment in...Read more
31 Mar 2022 by Policybazaar 4380 Views
In this ever-evolving and the technologically-driven world, cyber-attacks have been increasingly common and a...Read more
29 Nov 2022 by Policybazaar 1379 Views
Cybersecurity vigilance is crucial to safeguard against phishing...Read more
15 Mar 2024 by Policybazaar 165 Views
In a fast-paced business environment where every minute counts...Read more
13 Mar 2024 by Policybazaar 239 Views
Ransomware risks are on the rise, posing a significant threat to...Read more
13 Mar 2024 by Policybazaar 214 Views
The rise of smart automobiles has ushered in a realm of...Read more
27 Dec 2023 by Policybazaar 400 Views
Wearable technology has revolutionized healthcare, offering a...Read more
15 Dec 2023 by Policybazaar 306 Views
Policybazaar for Business - Cyber Insurance - Customer Reviews
View all
4.5/5
Based on 47 reviews
4.5
out of 5
Based on 47 reviews
12 users
34 users
1 users
0 users
0 users
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.
Agra
4.3 October 06, 2022
Amit
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.
Nashik
4.5 October 04, 2022
Pinku
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.
Surat
4.5 October 03, 2022
Aashish
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.
Ahemdabad
4.5 October 02, 2022
Nishant
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.
Udaipur
4.5 October 01, 2022
Puneet
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.
Assam
4.5 September 30, 2022
Govind
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.
Jharkhand
4.8 September 29, 2022
Rinku
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
Ishan
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.
Ajmer
4.5 March 17, 2022
Anurag
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.
Delhi