How Cyber Insurance Will Change in the Future

Criminal activities have a profound effect on every section of society. How much damage they can do to a person depends on the exact nature of the crime. For example, if a cab driver’s car is stolen or wrecked, his entire livelihood is in danger. Cybercrime is a type of crime that affects everyone today. As most of us spend a large part of our lives in the digital realm, almost everyone is at risk of becoming a victim of cybercrime.

For protection from cybercrime, people have been opting for cyber insurance for some time now. It is a type of general insurance that protects the policyholder from cybercrime and digital scams. This protects the policyholder from the dangers of cyberattacks such as email spoofing, data theft and hacking while browsing the internet for personal use or business.

Although there are many cyber insurance plans available in the market, experts say that you should choose the ones that are specifically designed to cover individuals against potential cyber threats and risks. Therefore, you need to know what the plan is and what benefits you can expect from them.

What is cyber ​insurance?

The cyber insurance policy covers the price, fees and legal costs associated with cybercrime protection. Cybercrime involves the misuse or theft of personal or business information about customers or employees. The most common example of cybercrime is unauthorized access to personal information. This is where the role of cyber insurance comes into play. *

Data protection is one of the primary responsibilities of companies because they have access to the private and confidential information of their customers/employees. Such companies are required to have cyber insurance coverage in India. *

What is covered under cyber insurance?

The coverage of a cyber insurance policy depends on the individual or organization that can claim it. Cyber ​​insurance covers the following:

For first-party claims

  • Transfer of money or assets belonging to an online company. *
  • Any fraudulent activity or computer system breach through online networks. *
  • Online fund transfer by customer after e-communication with customer care. *
  • Any fraudulent communication for which the company is legally liable. *
  • Extortion payments, including expenses incurred by professional negotiators, payments made to extortionists, any fund transfers, etc. *
  • Any online vandalism committed by a company employee. *
  • Interruption to online business*
  • Any financial loss due to the crisis, including the cost of public relations consultants. *

For third-party claims

  • Damage caused by system security failure and any liability for unauthorized access or leakage of any customer information on the Internet*
  • Copyright Infringement, Trademark Infringement, Liability for Content as well as Claim for Property*
  • Defamation, breach of privacy etc. *
  • Claims arising from system failure causing damage to third-party systems. *
  • Weak access responsibility, including claims, made unavailable to system customers due to security system failure. *
  • The cost of justifying any insurance claim brought by the government. *

* Standard T&C Apply

What’s in store for cyber ​​insurance in the future?

The landscape of threats in the cybercrime continues to grow and insurance companies do their best to adapt. Having cyber insurance is a good idea, if you can afford the right amount of coverage. In some cases, it cans serve as the deciding factor whether a business shuts down or keeps standing. *

You should not only buy an insurance policy, but also pay attention to the basics of security. This is to make sure that the policy truly a holistic tool of protection for you. *

* Standard T&C Apply

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.