The Digital India Revolution is a government initiative that brings all businesses to the web. The traditional ways of conducting business are changing to online and with more interactive approaches. With the shift in the business paradigm, there is an increasing number of transactions that are carried over the internet. Cyber liability insurance is introduced to protect against the financial risk of these transactions. Cyber insurance in India is a relatively new form that is gaining attention with the increase in data breaches at some of the world’s reputed organisations.
Who needs cyber insurance?
Multinational companies (MNCs) are those who possess confidential data. A cyber threat to their information systems reveals sensitive information. It can be in the form of login credentials, passwords, email IDs and more. This exposes us to unprotected networks on which we may experience cyber attacks.
Not only do large business entities, but small businesses, as well as individuals, need to protect their data. Any individual or organisation that has an online footprint needs cyber insurance
What costs are covered by cyber liability insurance?
Being an insurance product, it indemnifies the policyholder against losses. Not all losses are direct in case of cyber fraud. In these situations, cyber liability insurance aids the policyholder in covering the cost of prosecuting a criminal offence, cost of claiming damages against third party losses, legal fees along with restoration costs and cost to hire consultants. Also, direct losses like loss of funds from bank accounts or e-wallets are covered by cyber insurance.
What does a cyber liability insurance cover?
Cyber theft involves data breaches, identity theft along with financial loss due to unauthorised online transactions, malware attacks, phishing scams and more.
When a cybercriminal gets unauthorised access to your personal information, which is used to commit crimes in your name, cyber liability insurance will help you to safeguard yourself. Sufficient cyber insurance coverage
will help in handling the defence and costs related to prosecution.
The litigation costs where your social media account is used to publish salacious and humiliating content illegally can be covered by a cyber insurance policy. Over the years, there have been many instances where social accounts of popular and well-known personalities have been attacked. These incidences have seen an increase in the importance of cyber insurance in India.
Privacy & Data Breach by Third Party
Legal fees pertaining to damages against third parties can be claimed using your cyber insurance.
It involves situations when you are harassed using digital modes. It is not restricted to any particular medium or format. Reporting such criminal cases incurs financial costs for prosecution, which are covered by your cyber insurance plan.
Phishing & Email Spoofing
Cybercriminals resort to these methods to obtain sensitive information of your bank accounts or details of your plastic money. These criminals generally pose to be representatives of authorised institutions tricking the innocent people in disclosing confidential information. These scams pose a threat and can cause substantial financial losses. Cyber liability insurance will help cover your prosecution expenses during these litigations.
Malware attacks, IT theft loss, cyber extortion and media liability are also secured in addition to several other cyber insurance benefits
To conclude, it is always smarter to be on the safer side and assume that you possess what cyber-criminals want rather than thinking that you don’t.
So who needs cyber insurance? Every person, but especially you.