- There are some key things to see before buying a cyber insurance policy
- In recent times, cyber-attacks have been on a rise
- WannaCry, Petya ransomware cyber attacks, which took place in May and June, brought thousands of systems the US, the UK, Russia and Ukraine on their knees
On a global level, thousands of organisations have come under cyber attacks recently after hackers exploited undetected vulnerabilities in different versions of Microsoft’s previous mail server software.
The massive level of cyber-attacks has been causing damages to scores of companies as well as users around the world.
Considering the progressively flourishing digital world that we live in, where instances of an individual’s personal data being generated, transmitted and stored on several digital devices are growing at an exponential rate, there is no doubt that a cyber insurance is the need of the hour.
In the aftermath of COVID-19 lockdowns, there has been rapid adoption of digital and online modes of payments, given the safety protocols of social distancing amid fears of possible transmission of the deadly virus through the physical exchange of money.
Cyber Insurance offers coverage against a plethora of cyber attacks and threats, help customers protect their data against potential breaches, and also reduce the impact of loss in case vital, financial or sensitive information is stolen or misused.
What does a typical Cyber Insurance Covers?
It covers financial losses resulting from:
- ransom-ware attack
- cyber extortion
- IT theft
- E-mail spoofing and phishing
- Losses and expenses related to defence and prosecution cost related to identity theft and cyberstalking
- Restoration cost to retrieve or reinstall data or computer programme damaged by malware
As of now, cyber policies are not widely available in India. The majority of the companies which offer cyber policies are for organisations and not individuals. Though there are some individual policies as well, however, the coverage is not wide enough.
The main reason for this is that it is extremely difficult to assess the loss caused by cybercrimes, and therefore, pricing of such policies becomes very difficult.
The sum insured under such policies could range anywhere between ₹ 1 lakh and ₹ 1 crore.
Following a cyberattack, the product helps in getting advice, restoring data, covering legal costs, tackling bullying and also paying ransom in case of cyber-attacks.
The major things covered under a cyber insurance policy are
- Theft cover
- Cyber stalking
- IT theft loss cover
- Phishing cover
- E-mail spoofing
- Cyber extortion cover
- Counselling services
Some of the commonexclusions you will find under such policies are
- Dishonest and improper conduct
- Bodily injury/property damage
- Unsolicited communication
- Unauthorized collection of data
- Immoral/obscene services.
Please note that such policies come with plenty of sub-limits which means under each clause one can only claim a certain maximum amount.
Industry experts advise that while raising a claim, the policyholder must approach the insurer at the earliest upon discovery of a cyberattack as it will enable the assessing process of the claim smoothly.