The Importance of Cyber Security Insurance: Is Cybersecurity Insurance Worth it?

In today's digital age, technology has become an integral part of our daily lives. From shopping online to banking to communicating with friends and family, we rely on technology for many aspects of our lives. However, with the increasing dependence on technology comes an increased risk of cyber attacks. Cyber attacks can have devastating consequences for businesses and individuals, including loss of data, financial loss, and damage to reputation.

Read more
Get ₹5 Cr Cover at just ₹4,60,000*
₹5 crore cover for only ₹2 lakh*

Expert Advice

Buy Right

Instant Policy

Quick & Hassle free

Dedicated Team

Speedy Claims

*Premium varies on the basis of Occupancy, Business Activity & Coverage Type

Please share some basic details

Step 1/2
Are you buying the policy for?
Or Contact us on: 1800-309-0988
Get Updates on WhatsApp
By clicking on "" you agree to our Privacy Policy and Terms Of Use, and also provide us a formal mandate to represent you to the insurer and communicate to you the grant of a cover.

*Premium varies on the basis of Occupancy, Business Activity & Coverage Type

Just a step away from the quotes
Step 2/2

Popular Cities

Are you buying Cyber Insurance policy for the first time?
Or Contact us on: 1800-309-0988
Get Updates on WhatsApp
By clicking on "" you agree to our Privacy Policy and Terms of Use, and also provide us a formal mandate to represent you to the insurer and communicate to you the grant of a cover.

*Premium varies on the basis of Occupancy, Business Activity & Coverage Type

In order to protect against these risks, many organisations and individuals are turning to cyber security insurance as a way to mitigate the financial impact of a cyber attack. The question remains, is cybersecurity insurance worth it?

What is Cyber Security Insurance?

The cyber security insurance is a type of insurance that provides coverage for financial losses resulting from cyber attacks. This can include coverage for data breaches, loss of data, and damage to reputation. 

It can also include coverage for the cost of hiring a forensic investigator to determine the cause of the attack, as well as the cost of notifying affected individuals and providing them with credit monitoring services. Cyber security insurance can also cover the cost of hiring a public relations firm to help restore an organisation's reputation following a cyber attack.

Why is Cyber Security Insurance Important?

Cyber attacks can have a significant impact on businesses and individuals, both financially and reputation-wise. The cost of a data breach can be substantial, and the cost of restoring a business's reputation can be even greater. According to a study by the Ponemon Institute, the average cost of a data breach for a small business is £38,000, and the average cost for a large business is £1.3 million. 

These costs can be devastating for a small business, and can even put a large business in financial jeopardy. Cyber security insurance can help to mitigate the financial impact of a cyber attack, allowing businesses and individuals to focus on recovering from the attack rather than worrying about the financial consequences.

Moreover, cyber security insurance can also help to protect businesses and individuals from legal action resulting from a cyber attack. Many businesses and organisations are required by law to notify individuals of a data breach and to provide them with credit monitoring services. Cyber security insurance can help to cover the cost of these activities, helping to protect organisations from legal liability. In addition, cyber security insurance can also provide protection for businesses and individuals against cyber extortion, where a hacker demands payment in exchange for not releasing sensitive information.

Why Should You Invest in Cyber Security Insurance?

Cyber attacks are becoming increasingly common and can have a significant impact on businesses and individuals. The number of attacks on data has been on the rise in recent years, and it is unlikely that this trend will change in the near future. Cyber security insurance can help to mitigate the financial impact of a cyber attack and can also provide protection from legal action.

In addition, investing in cyber security insurance can also help to encourage businesses and individuals to implement better cyber security practices. By having cyber security insurance in place, organisations and individuals will be more motivated to take the necessary steps to protect their data and systems from cyber attacks. This includes implementing firewalls, antivirus software, and regular software updates, as well as training employees on how to recognise and prevent cyber attacks.

Conclusion 

With the growing threat of cyber attacks, cyber security insurance can help to protect against financial loss and legal liability. Moreover, it can also serve as a motivator to implement better cybersecurity practices. The cost of a data breach can be substantial and can even put a business in financial jeopardy. Therefore, it is important to consider investing in cyber security insurance to protect your organization and individuals from the financial and legal consequences of a cyber attack.

Written By: PolicyBazaar - Updated: 24 January 2023

Cyber insurance news

Latest News
FM Nirmala Sitharaman announces Set up of 3 Artificial Intelligence Centres of Excellence

03 Feb 2023

Finance minister Nirmala Sitharaman presented the Union Budget FY 2023 on February 1, 2023. The Finance Minister announced the establishment of 3 artificial intelligence centres for excellence under
Read more
the initiative of “Make AI in India”. Set up of these AI centres will take place in top educational institutes. “Make AI work in India” is an initiative and a focus area of the Modi Government. Nirmala Sitharaman also said that the government will implement the national data governance policy.
Cyber Fraudster Target Customer under Disguise of Insurance Officer

09 Jan 2023

Cyber fraudsters are targeting customers under the disguise of not a bank official but an insurance company official. In one such event, a 67 year old citizen from Thottakattukara, Kochi, lost Rs 1 lakh.
Read more
He was approached by a woman name Radhika Jain who claimed to be from an insurance company. She promised the victim to make the financial settlement for the raised claim if he pays Rs 1 lakh to renew the policy. When the victim filed the complaint, Rural Cyber Police, Ernakulam, launched the investigation. The incident took place on October 29 and the fraudster claimed to be an ICICI Prudential Insurance official. The fraudster fooled the elderly person by telling them that his insurance policy has expired and the settlement cannot be made disbursement of the insurance amount. As per the Police officer, “The fraudster suggested the victim to pay Rs 1 Lakh to renew the insurance policy. If the policyholder pays the amount then he will be considered as Senior citizen and the disbursement will be done. In order to make it look genuine, the caller sent ICICI Prudential life insurance letterhead through Whatsapp.” “The fraudster promised the complainant that within 45 days the settlement of Rs 2.45 lakh will be done. The victim transferred the amount to the fraudster’s Canara bank account and once the payment was made the fraudster sent some fake documents. However, the promised settlement of Rs 2.45 lakh was not made even after 45 days.” A police officer said. After cross checking the details of transaction, the police found out that the accused was from Aligarh. Police is also probing as to how the accused got the information related to the insurance policy of the victim.
Sensitive Data of 6 Lakh Indians Stolen by Hackers and Sold at Rs. 490 each

09 Dec 2022

Out of 5 million people globally, 6 lakhs Indians have had their sensitive data stolen and sold on the bot market making India, the worst affected country.
Read more
The average cost of the digital identity of one person was Rs.490, revealed NordVPN, the world's largest VPN service provider. The stolen data include user logins, screenshots, digital fingerprints, cookies, and other sensitive information. All these data are sold in packets in the bot markets, which refer to places where hackers sell stolen data from victims' devices with bot malware. The study majorly looked into three-bot markets the Genesis market, 2Easy and the Russian Market. Out of 26.6 million stolen logins found on the bot markets, 7,20,000 were Google logins, 6,47,000 were Facebook and 6,54,000 were Microsoft logins. Moreover, 667 million cookies, 5,38,000 auto-fill forms, 81,000 digital fingerprints, multiple device screenshots, and webcam snapshots were also found by the researchers. The bot markets are distinct from other dark markets as bot markets are able to get huge amounts of information related to one person in one place. The hackers also guarantee that once the bot is sold, the data of the victim will be updated till their device is affected by that bot, stated Marijus Briedis, chief technology officer at NordVPN. Security researchers also said that not all bots come with a good purpose, many can be malicious as well. These bots operate in multiple fields like customer service, SEO and entertainment and are becoming increasingly common recently. Vidar, RedLine, Taurus, AZORult and Racoon are some of the most popular malware used to collect and steal information out of which RedLine is the most common, stated the report.
AIIMS Cyber Breach: Attackers Demand Rs 200 Crore in Crypto

06 Dec 2022

All India Institute of Medical Sciences, New Delhi, India reported a cyberattack on November 23, 2022. Later, the statement released by AIIMS said that e-hospital system
Read more
has gone down and it has affected the digital hospital services, e-billing, smart lab, appointment system and report generation. AIIMS currently manages around 2,500 beds. It is said that the data of around 2 to 3 Crore patients might have been compromised. After the incident, AIIMS shifted to manual operations to cater the patients. Also, All India Institute of Medical Sciences sought National Informatics Centre (NIC) and I-CERT to restore the digital services. The incident has been reported to Delhi Police whereas CBI and NIA have joined the investigation. AIIMS issued a new Standard operation procedure where the admission, discharge and transfer of patients will be done manually.  As per a source told Press Trust of India, “Hackers have demanded a ransom of Rs 200 Crore in crypto currency on November 28, 2022”. Later, Intelligence Fusion & Strategic Operations unit have registered the case under cyber terrorism and extortion on November 25.  Meanwhile, National Information Centre e-hospital database and application servers restored the data for e-hospital. Also, the team of NIC is cleaning and scanning infections from other e-hospital servers that are located at AIIMS hospital. These servers are required to deliver the service of the hospital. Also, four physical servers have been arranged to restore the e-hospital services and have been scanned and prepared for the applications and database. As per the source, “Sanitisation of AIIMS network is in progress. Antivirus has been installed on 1200 out of 5000 computers and 20 out of 50 servers have been scanned. This activity is going on 24*7”.
Cyber Criminals Sending Phishing Links to Twitter Users

06 Dec 2022

Cyber criminals are targeting twitter Verified Twitter user by sending them phishing links. The cyber criminals send the phishing link to steal their phone number
Read more
and other details registered with their account. This new phishing link attack is tricking users to enter their username, password and contact details such as phone number on an unverified website that is claimed to be a help site by Twitter.

Cyber insurance articles

Recent Articles
Popular Articles
The Need for Cyber Insurance Policy in India

01 Feb 2023

Cyber attacks are becoming increasingly frequent in India and
Read more
Understanding Cyber Insurance in India

30 Jan 2023

Cyber insurance, also known as cyber risk insurance or cyber
Read more
Cyber Insurance as Mandatory Cybersecurity Tool

23 Jan 2023

In today's digital age, the need for cyber insurance as a
Read more
From Pandemic to Cyber War, Clear Policy Wording is key for Insurers

19 Jan 2023

Amid the Covid-19 Pandemic, most of the Tech firm employees were
Read more
Hot Market for Cyber Insurance Begins to Stabilize

18 Jan 2023

The hot market for cyber insurance has stabilized after the
Read more
Biggest Cyber Breaches in India
We live in the digital era. Now, almost everything is possible online as every other organization is going digital
Read more
8 Ways to Enhance Retail Store Security
Every shop owner must put in extra efforts to make their retail store as safe as possible. To create a secure
Read more
Impact of Cyber-Attacks On Insurance Industry
The cyber risks have increased after the outbreak of Covid-19. One of the main reasons behind the increment in
Read more
What are the Key Metrics for Measuring Cybersecurity?
With cyber-attacks constantly evolving, it only makes sense that cybersecurity measures are constantly assessed
Read more
Cyber Security for Retail: Threats & How To Avoid Them?
With the increased usage of the Internet, the number of cyberattacks has increased as well. Since retail shops
Read more