What is a Cyber Insurance Policy?

Internet connectivity and usage have made our lives easier. However, increasing digitisation and growing online transactions have also made us cyber-attack victims. Thus, online security has become more important. In times like this, a Cyber Insurance Policy serves as the perfect option. Here is what you should know about it:

About Cyber Insurance

Cyber Insurance lets individuals and businesses dodge the risks of data theft and cyber-attacks. It works the same way as any other Insurance. It protects you from physical dangers and natural disasters. However, instead of these, it protects you against malicious online activities.  Additionally, it offers businesses coverage for the costs of internet-based threats. This includes risks that affect IT infrastructure, information policy, etc., that are not covered by traditional Insurance products.

Why opt for Cyber Insurance?

Cyber Insurance Policies are increasingly growing in importance. The following are some reasons why:

There is an increased risk of cyber-attacks against devices, users, applications, and networks.Loss or theft of data can affect a business’s reputation and revenue. It may also result in a loss of customers.You may be responsible for damage if third-party data is stolen or lost.Investing in a good Cyber Insurance Policy can protect you against cyber events like cyber terrorism. It also helps you with any security incidents.

Coverage offered under Cyber Insurance

There are several policies with varying benefits. Some coverages that a Cyber Insurance Policy offers are:

Privacy protection against claims of loss of commercially private information, personal information, etc., by a third party.Protection against loss of profits caused due to a cyber event.It may cover the payment of ransom demands.Coverage for damaged, lost, or destroyed data, IT systems, and IT records.Coverage for penalties and fines that the insured may incur.Depending on the policy type, the Insurance may cover crime losses, such as loss of property or money.Cyber Defence Insurance may cover reward expenses paid to a third party to secure the conviction of a perpetrator.Coverage for penalties and fines.The Insurance Policy also covers identity theft, malware decontamination/data restoration. It handles the costs incurred to mitigate the damage to the reputation of a brand and/or the personal reputation of senior executives.You can also select coverage for online sales, online or cyber shopping, cyberstalking, cyberbullying, etc.The Cyber Insurance Policy covers multiple devices such as mobiles, laptops, etc.You can choose a multimedia liability cover that protects against slander, libel, or defamation claims.Advantage of worldwide cover.Liability for intentional misbehaviour of underage persons.

Who can buy Cyber Insurance?

The following can avail of a Cybersecurity Insurance Policy:

BusinessesThose exposed to any form of cyber risk can buy this for their families and themselves. The term ‘family’ includes yourself, your spouse, and two dependent children up to 18 years.