Cyber insurance is an essential component of any IT or cyber security department tasked with safeguarding a company’s assets, data, reputation, and bottom line in the face of cyberattacks. While prevention is crucial, no technology, solution, or strategy can ensure that an organization will not fall victim to a cyber-attack. Given the seriousness of the threat, a company might opt to obtain cyber insurance, which can effectively reduce some of the implications of a breach.
What is cyber insurance?
Cyber security insurance reimburses businesses for expenses, fees, and legal costs incurred due to cyber intrusions. This even includes loss or theft of client/employee information due to an organization’s data being hacked. A frequent cause of such a breach of security is unauthorized access, where cyber risk insurance enters the picture. Companies possess access to their customers’/users’ private and confidential information; hence data protection is one of their essential duties. For such businesses, an insurance policy in India is necessary.
Some of the key types of cyber risk insurance
Cyber Risk insurance plans can be classified in various ways and categorized depending on a variety of factors.
- First party: – This covers everyone directly affected by the incident. It will usually cover the sufferer of a variety of difficulties, such as the following:
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- Data Destruction
- Extortion
- Online Theft
- Hacking Activities
- Deliberate and Accidental Denial of Service
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- Liability coverage: – It is a pack for circumstances that are the result of the actions of others. The following is one of the factors that should be taken into account:
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- Errors of commission
- Errors of Omission
- Data Breaches
- Data Theft or Business Secrets
- Defamation and Related Negative Publicity
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- General Benefits: – This bundle includes a slew of other possible advantages of having complete and current cyber insurance. The following are some of the benefits:
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- Structured and Planned Security of Audits
- Post Incidents Managements
- Public Relation Initiatives
- Major Investigations and Reports
- Criminal Reward Funds
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In other sentences, cyber insurance protects a person or a corporation against risks, responsibility for allegations, and the repercussions of such claims. Cyber insurance, which is comprehensive and functioning in all scenarios, is the finest.
Top cyber insurance companies in India
Cyber security insurance is available from several insurance providers in India at a reasonable cost. The amount insured might be between Rs 1 lakh and Rs 1 crore. The following are some of the Indian firms that provide this insurance:
- HDFC Ergo
- Bajaj Allianz
- SBI General
It is really important and significant to explore several aspects of cyber insurance as cyber threats are increasing day by day.
