Since 2018, there has been a steady rise in cyber crimes. India reported 2,08,456 incidents in 2018, 3,94,499 in 2019, 11,58,208 in 2020, 14,02,809 in 2021, and 2,12,485 in the first two months of 2022. From 2018 to 2021, cyber crimes increased almost seven times, and they grew even more quickly during the pandemic.
Cyber insurance helps pay for the money lost by cyber events and incidents. Cyber insurance coverage also helps pay for the costs of fixing the problem, such as hiring lawyers, investigators, and crisis communicators, and giving customers credits or refunds.
The insurer may cover the loss caused by the unauthorized disclosure of corporate information caused by a security breach by the insured. Similarly, an insurance claim is also possible for ransomware, forensics, and similar things.
Why is cyber insurance important for a business?
Coverage for your business’s losses and legal costs, if there is a breach in cyber security, is why cyber insurance is important for any business operating in the digital space. This gives your company complete insurance protection against cyber or digital risks that can cause financial loss to the insured, and damage to a third party’s reputation if the insured’s systems may breach. *
Who needs cyber insurance for a business?
Today, every organization is very likely to be the victim of a cyber-attack or incident, such as changing or deleting data, cyber extortion for ransom from database encryption, network lockdown, system failure, system encryption, service unavailable, unauthorized access, fraudulent fund transfer, and many more. *
Because of this, it is essential that all businesses, no matter how big or small, follow this practice to ensure their cyber security. A cyber-attack can also lead to the misuse of sensitive customer data, employee data, business or contract details, financial information, information about shareholders, and other vital data. The insurance also pays for restoring this data, or any legal fees if personal information about a third party is misused or leaked. *
Why is cyber insurance important for corporates?
Corporations need to adopt this policy to protect their financial data, employee and customer data, programmes, computers, and networks from being accessed and used by people who shouldn’t be able to. *
Also, in a cyber-attack, the insured may have to pay a lot for forensics, investigations, ransomware, and losses caused by the business shutting down. Implementing corporate cyber security may reduce the chances of a data breach, and reduce the time it takes for a company to respond to an attack. *
What does cyber insurance for businesses cover?
Here are the details of all the inclusion of corporate cyber Insurance coverage.
- Individual security and privacy liability:The insurer may pay the loss caused by the insured’s security breach and/or privacy breach. *
- Multimedia liability:The insurer may pay for any loss caused by the insured’s use of multimedia activities. *
- Corporate security liability:The insurer may pay for the loss caused by the unauthorized disclosure of corporate information due to a security breach. *
- Incidental claims: Forensics, ransomware, and other such costs are covered in the policy. *
What are the benefits of buying cyber insurance for a business?
- It keeps your business from losing money or getting hurt if confidential information is shared without permission. *
- It protects your business from malware attacks, privacy and data breaches, fraudulent transactions, data changes or deletions, and losses caused by business interruptions. *
- It pays for all of your costs, up to the limits given, that come from the above damages. *
Cyber insurance coverage is a must for protecting company data because cyberattacks are on the rise, and it is the job of a business owner to protect the company from any unexpected financial burden that could lead to a significant loss for the employer, employees, or customers of the company. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.