What is cyber insurance and why do you need it?
Generally, wherever there is a threat, there's an insurance company working against it. Now, due to the mass popularization of the Internet and social media, and subsequent rise in web-based transactions, cyber security has become a major concern for all Internet users. That's why the concept of cyber-insurance has come up. Here, we explain what cyber insurance is, and why you need it.
What exactly is Cyber Insurance?
In the simplest of terms, a cyber insurance policy is a policy agreement providing you protection against cyber crimes and attacks leading to financial, data, and other losses. For instance, if there has been a data breach incident, the insurance provider will take responsibility of investigating and notifying you of such breach, recover data and financial losses incurred, and cover lawsuit and other expenses.
Coverage against lost profits and data losses incurred
In case your company goes through a cyber attack, your cyber insurance provider will give you coverage of the losses incurred during the recovery period, and the costs involved in dealing with such attacks. Also, if your company handles private information of your clients or users, and there occurs a cyber privacy attack, your insurance provider will help you deal with the costs involved.
Protection from ransomware, loss of digital assets, and other losses
The threat of ransomware and other malicious software programs hijacking your computers is at an all time high. Thus, buying a cyber insurance could come handy in dealing with them. Further, if you lose part or whole of your digital assets due to a cyber attack, your insurer might cover the costs of such losses. Other benefits include protection against reputational and manpower losses.
Which companies provide cyber insurance in India?
With the increasing threat of cyber attacks like ransomware and data theft, many insurance providers have come up in India. Top insurance companies providing cyber security policies in India include ICICI Lombard, HDFC Ergo, Bajaj Allianz, Unison, and Tata AIG.