Cases -
Cyber Insurance Example Cases 1
On December 31,2021- Employees in manufacturing firm received an official email with a gift voucher. Everyone including the company CEO clicked on it. Within seconds, all internal systems went useless as the link had malware.
Cyber Insurance Example Cases 2
AIIMS, India's top medical institute came to a near-halt in November when a cyber-attack derailed everyday work and patient care. Infected files and data on main and backup servers of the mega-hospital crippled operations for over a week. The hackers that hit AIIMS stole confidential data of 40mn patients, including medical records of VVIPs
Introduction
As cyber threats continue to grow, cybercrime is becoming a major challenge for businesses nowadays. It has become a necessity for many businesses in order to keep them safe from these threats.
Cyber Insurance – Explained
Cyber insurance is a business insurance product with a coverage for cyber-crime and associated expenses. It is designed to protect your company from financial harm incurred as the result of a data breach, cyber security incident, or ransomware attack. Cyber insurance is a policy designed to offset the financial risk of data breaches and cyber security incidents. It does this by reimbursing expenses related to damages and recovery.
Is it an additional liability?
Until recently, cyber insurance in India was considered as an additional liability insurance that could be added to your standard business insurance. The older policies often cover breaches of physical assets or business interruptions due to cyber-attacks.
Cyber Security Market – World and India
Global Data recently reported that the global cyber insurance market will rise to $20.6 billion by 2025-from $7 billion in 2020. This is mainly because of the increase in cyberattacks over the past few years. In the year 2021, cyber-attacks were 50% higher than what they were in 2020. It doesn't seem like threat actors will stop exploiting new vulnerabilities anytime soon, so we're likely going to see more cyber-attacks as time goes on.
Cyber Insurance in India has gained a lot of attention over the last 2 years with 40% growth, according to the Data Security Council of India. This can be confirmed by looking at HDFC ERGO's recent report, which projects that cyber insurance products have grown at 21% over the past four years.
Cyber Insurance Covers
Cyber insurance policies typically cover two types of risks: first-party risks, which are costs incurred by the policyholder, and third-party risks, which are costs incurred by someone else as a result of the policyholder's actions.
By 2021, the most common attacks we'll see are malware and ransomware as well as compromised credentials, business email penetration, phishing and third-party software vulnerabilities. Cyber-attacks have evolved over the years and now include supply chain hacks. They've also shifted to encompass double/triple extortion schemes.
What does a cyber insurance coverage include?
Identity Theft - This insurance will cover the cost of your defense if a claim is made against you due to your identity being stolen. Other things that are covered in this insurance include the cost of going to court, transportation, and photocopying documents.
Malware Attack - Cyber insurance will cover the cost to restore your computer after a malware attack. It also covers the defence cost of a claim raised by the affected party, if they have any legal liability because of the attack.
IT Theft Loss - When a third party breaches your cyber security, you're protected by cyber insurance. Not only will your company's losses be covered, but the cost of prosecuting and legally pursuing the third party who is responsible for those losses will also be covered.
Cyberstalking - This insurance covers the cost of prosecuting a third party in a criminal case.
Email spoofing - In the case that you were a victim of email spoofing by a third party, the cost will be covered up to the limit you selected. In addition, if you file a lawsuit against the third party, the cost of prosecution is also covered by cyber-crime insurance.
Cyber Extortion - If you are the victim of a cyber extortion act, your insurer will cover both the cost of the crime and any legal proceedings related to it.
Phishing - If you're ever the victim of an act of phishing from a third-party, the damages will be covered by your cyber insurance. Plus, if you need extra help with prosecution, prosecution costs are also covered by cyber insurance.
Media Liability Claims - If your business is sued, we cover the cost of defending you in court. If any third party sues you, we cover your defence costs. We also cover the cost of prosecuting them, the transportation to the courts and photocopying your documents.
3rd Part Data Breach and Privacy - This coverage pays for your legal expenses when third parties violate your privacy and violates your data.
Cyber insurance is not required by law, but it is becoming increasingly popular among businesses of all sizes. If you are considering carrying cyber insurance, be sure to shop around and compare policies from different insurers to find the right coverage for your business. BimaKavach provides best cyber insurance recommendation in just 5 minutes
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