Cyber-attacks are becoming increasingly regular, as are high-profile data breaches. The online exposure of individuals, corporations, workplaces, and other facilities continues to rise, especially in the present pandemic crisis. As a result, the Authority organized a working group with the purpose of determining whether standardized Cyber Liability Insurance policy wording is feasible.
Cyber insurance is a sort of insurance that safeguards businesses against the consequences of cyber-attacks. It enables a company in limiting risk exposure by setting expenses after a cyber-attack or breach. To put it another way, cyber insurance is designed to cover the costs of cyber breaches that occur after a company has been hacked, as well as the theft or loss of client/employee information. A typical cyber risk insurance coverage is designed to protect businesses from cybercrime such as ransomware, malware, and distributed denial-of-service (DDoS) attacks. The claims could potentially include the costs of privacy investigations or litigation following an assault.
Now, the important question is the importance of cyber insurance in India.
Indian businesses are incorporating technology into every aspect of their operations. It’s also assisting in the streamlining of procedures, improving performance, reducing transaction time, and increasing productivity. All of this, however, is accompanied by the dread of online data theft and other cybercrime. Cybercrime is the largest risk for India Inc, according to a new cyber risk report (Allianz Risk Barometer 2019). This is more dangerous than traditional concerns such as regulatory changes, market developments, and increased competition.
According to Symantec, a global cybersecurity company, cybercrime in India has increased by 457 percent in the last half-decade. Between 2016 and 2018, India was rated second on the list of countries most affected by cybercrime and related dangers. Cyber insurance has become increasingly vital for an organization or individual operating in India as a result of these factors.
Oh great! Cyber insurance covers variety of things. Some of it are: –
If money is stolen as a result of a cyber event/hacking of the insured’s bank account, credit card, debit card, or mobile wallet by a third party, the coverage protects the insured’s bank account, credit card, debit card, or mobile wallet.
It also covers the costs of defending claims brought against the insured by third parties who have been victims of identity theft fraud.
The coverage pays for defense costs if a third party or an affected party files a claim against the insured as a result of the insured’s hacked social media account.
It covers the costs of the stalker’s prosecution. The insurance covers the price of data restoration caused by malware.
It also safeguards against phishing scams. The policy prevents a third party from making fraudulent online purchases using a bank account, credit card, debit card, or e-wallet.
The coverage covers both financial losses and the cost of prosecuting the perpetrators in the event of a phishing email attack.
It covers the costs of defending against defamation and invasion of privacy claims made by third parties as a result of the insured’s publication or transmission of any digital media content.
It safeguards against extortion damages caused by the cyber extortion threat and reimburses the costs of prosecuting offenders.
Nothing in this world covers everything. The following are excluded from the policy: –
Cyber insurance does not cover claims for injuries or property damage caused by a cyberattack.
Any claims that can be linked to unsolicited contact
It may not be able to protect your company against hackers or cybercriminals, but it can cover financial damages or expenses if that happens.
A fraudulent act by an insured or a wilful violation of any such law or regulation.
With cyber invasions and data breaches now dominating the news on a daily basis, business executives are becoming more concerned than ever about hackers and other data security breaches. This global threat is exacerbated for accounting company CEOs, who have the combined challenge of keeping not just their own information, such as a corporation, but also the information of their clients. Any security breach in your company’s technology can cost you money and, more importantly, create mental anguish. As a reason, it’s always a smart idea to protect your business with cyber insurance coverage to deal with any consequences that may come as a result of any technological security issues.
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