Cyber fraud has always been a known threat to many but India has recently seen a steep increase in the number of such online crimes. A report by Kaspersky Security Network revealed that cyber-attacks in the country has increased by 37% in the first quarter of the year 2020. With such data coming to light, having cyber liability insurance becomes a necessity for most individuals. To help you secure yourself from such fraudulent activities, let’s go through the essential cyber insurance checklist.
Cyber Insurance Coverage Checklist That You Should Go Through
When purchasing cyber insurance
, there are three things you need to consider. The first one is the coverage, the second is sub-limits and the third is the exclusions.
Inclusions of Cyber Insurance Plan
As part of your cyber insurance checklist, firstly, you need to consider the inclusions very closely as these are the aspects covered by the insurer. They might also be termed as clauses. The below-given factors should be covered by your insurance policy:
Sub-Limits of Cyber Liability Insurance
- Financial loss incurred due to phishing and email spoofing
- Any fraudulent transactions taking place online in your bank account, e-wallet, credit or debit card.
- Destruction of data, software applications, systems, etc.
- Any business interruption due to cyber attack
- Information theft
- Social media liability or media liability
- Any loss due to IT theft
- Identity theft
- Cost and losses arising out of defence against identity theft
- Breach of data and privacy by a third-party leading to loss of personal information
- Any damage or loss due to cyber-terrorist acts
- Cost of attending cour summons for cyber extortion
- Unrecoverable damage or loss of data belonging to your organisation
- The expense of replacing, repairing and updating your computer system
- Issues with business continuity
- Damage to the reputation of the individual and the organisation including defamation
When purchasing a cyber liability insurance policy, you will find the covers of the plan having sub-limits. These terms can vary from one insurer to another which is why it is recommended to go understand these conditions. The sub-limits are limitations to the amount of coverage available to cover a particular kind of damage or loss. To avoid any claim rejection issues in the future, understand the terms and conditions mentioned in your policy paper.
Common Exclusions of the Cyber Liability Insurance
Here are some of the exclusions that are not covered by the insurer. Thus, you should always consider these aspects and then decide if this policy secures your interests completely.
How Does Cyber Insurance Work?
- Any damage to property or bodily injuries
- Deliberate or intentional loss
- Unauthorised data collection
- Loss of cryptocurrency or online trading
- Claims regarding offline services
- Any type of unexplained loss
- A pre-existing loss that you may have incurred
You may buy a cyber liability insurance policy for a certain amount of coverage. But while settling your claim, the percentage of the limit of liability shall decide the compensation amount. In the case of financial loss experienced due to phishing, the percentage limit may be capped at 25%. Thus, the claim amount will only be 25% of the sum insured amount even if you have high coverage. But something you need to be aware of is that you can only file a claim for one breach at a given point of time. If you experience several breaches, then you can choose one for filing your claim. But there is no limit on the number of claims you can submit during the policy period.
With this, you can now pick the most suitable policy with the help of the cyber insurance checklist. But ensure you read the fine print and check if you have the right amount of cyber insurance coverage
to secure yourself from threats!