Cyber ​​insurance helps cover losses caused by hacking and virus attacks

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Cyber ​​liability insurance helps you cover damage caused by a virus attack on your devices such as a laptop, tablet or computer. With the increasing prevalence of cyber attacks all around us, it is no longer an uncommon occurrence to infect a computer with a virus or face a data breach. To avoid losses from these attacks, one can consider purchasing cyber insurance.

Cyber ​​insurance offers two main types of coverage. The first is first-party coverage, which is coverage for losses you suffer directly.

And then there’s liability insurance to cover claims by individuals for the losses they’ve suffered because an organization didn’t keep their data safe.

First-party coverage typically covers a range of cyberattacks, including but not limited to: someone holding your computer data for ransom, a natural disaster destroying computer hardware, viruses or malware in computer hardware, and data corruption.

On the other hand, third-party coverage includes court judgments that you are legally obligated to pay following a data breach and media liability, including copyright infringement, domain name and trade name infringement, etc.

“There are several cyber liability products that cover first-party damage, third-party damage and extortion. The most important thing about cyber liability is to understand the exclusions and guarantees very well. These essentially decide the amount of your claims to be paid. The ideal way to purchase cyber liability insurance is to create a list of potential threats you face and then request at least those coverages from insurers,” said Kapil Mehta, co-founder and CEO of SecureNow Insurance.

The currently available individual plans insure most of the cybercrimes listed by IRDAI and coverage starts at 10,000 and can go up to 5 crores.

Most insurers also offer customizable plans based on the insured’s risk exposure and budget, and one can choose between the specific crimes one wants to cover. Policyholders can also include IT consulting in the insurance.

“Cyber ​​risk has changed shape and form with the shift of work to the internet, new technologies, reliance on IoT services and emphasis on a digital-first approach. Cyber ​​insurance as a product is now offered by all major insurance companies. Although underwriting has gotten a little tighter as risk has increased tremendously. The insurance company is now going through many documents shared by the companies to assess the risk, such as:

Among several insurers offering cyber insurance, Future Generali coverage includes data breaches, personal social media coverage, cyber stalking, malware coverage, phishing coverage, email spoofing, cyber extortion and identity theft. The insurer also offers additional coverage for ATM robbery, card counterfeiting liability and card loss liability.

Bajaj Allianz Cyber ​​Insurance covers all regular cyber liability. In addition, you can also take out supplementary insurance for IT consulting services and consulting services.

Another insurer, Iffco-Tokyo, offers cyber security insurance that covers a range of cyber events such as human error, data breaches, and e-threats, among others.

Some common cyber security insurance coverages:

1. Theft of Funds: This covers losses due to cyber incidents or hacking of bank accounts, credit/debit cards and/or mobile wallets by a third party.

2. Cyber-stalking: The policy covers the costs of tracking the stalker.

3. Malware/Data Recovery Costs: This policy covers data recovery costs due to malware.

4. Phishing: It covers financial loss from phishing attacks, including the cost of prosecuting perpetrators.

5. Cyber ​​Extortion: Provides protection against extortion losses due to cyber extortion threat. This also includes the costs of prosecuting perpetrators.

6. Identity Theft: Covers the cost of defending claims against insureds by third parties or victims of identity theft.

7. Media Liability Claims: Covers the defense costs of third party claims of defamation or invasion of privacy resulting from the publication or broadcast of digital media content by the Insured.

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