Cyberattacks are becoming more common and high-profile data breaches are often found in the daily news. Online exposure to such instances of individuals, businesses, offices, and other facilities continues to grow, especially in the current pandemic crisis. As a response to this risk, authorities set up a working group with the aim of examining the feasibility of cyber insurance policies.
Cyber insurance generally covers the liability of your business for data breaches, including sensitive customer information such as social security numbers, credit card numbers, account numbers, driver license numbers, and health records. However, hardly anyone is aware of what cyber insurance is, what the extent of its coverage is, how to purchase it, etc. Hence, here is an overview of everything you need to know about cyber insurance:
What is cyber insurance?
Cyber insurance is a type of insurance that protects companies from the effects of cyberattacks. This will help the company in reducing the risk exposure by setting expenses after a cyberattack. In other words, the purpose of cyber insurance is to cover the theft or loss of customer / employee information along with the fees, costs and legal costs associated with cyber violations that occur after a company is hacked.
The purpose of cyber insurance coverage is to protect businesses from cybercrime, such as ransomware, spyware, and distributed dinel-of-service (DDoS) attacks. Subsequent privacy checks or the cost of litigation may also be included in the claims. * Standard T&C Apply
What is covered under cyber insurance?
In the event of a cyber incident / hacking of a bank account, credit card, debit card or mobile wallet, the insured’s bank account, credit card, debit card or mobile wallet will be protected by a third party. It also covers the costs of protecting claims made by a third party against an insurer who has been exposed for identity theft. Here are a few things included in the coverage of cyber insurance:
- The policy covers the defense costs of claims brought against the insured by a third party or affected party due to the hacked social media account of the insured.
- This will cover the cost of suing the stalker. The cost of data recovery related to malware is covered by coverage.
- It also protects against phishing attacks. This policy protects against fraudulent use of bank account, credit card, debit card or e-wallet by any third party to make purchases online.
- This policy covers financial damages caused by a fake email attack as well as the cost of prosecuting the perpetrators.
- It covers defense costs in the event of a defamation/privacy claim brought by third parties as a result of the publication/transmission of any digital media content by the insured.
- It protects against the threat of cyberbullying and the costs of prosecuting criminals.
* Standard T&C Apply
Due to the ever-changing nature of cyberattacks and the high demand for new cyber insurance products due to new difficulties, general insurance providers should continue to strive to design custom-made products based on the model policy terms and recommendations given in the text. Insurers must achieve the above objectives in a way that is fair and beneficial to policyholders. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.