Companies are frequently the target of a cyberattack, whether ransomware, phishing emails with embedded malware, or even social engineering attacks. Premiums of cyber insurance in India appear valuable to many of these companies’ leaders.
Nonetheless, many clients continue to ask us some variation of the following question: What exactly is covered in a cyber insurance policy? Some businesses even question whether the cyber risk is insurable.
The wise news is that cyber risk can be insured. This article can explain how cyber insurance works.
What does cyber insurance include?
Every company, regardless of size, faces cyber risk, but the larger the company, the more areas of vulnerability it has. Privacy, security, operational, and service risks are the most prominent cyber risks.
In general, cyber insurance for individuals or company is intended to save your business from these major risks by below four separate insurance contracts:
- Liability for network security and privacy
- Business interruption on the network
- Liability in the media
- Omissions and errors
The privacy & Network security liability may include 1st and 3ed party costs. Let’s go over each component and the specific cyber risk it addresses.
- Network safety:
Most businesses require network security coverage, including those subjects to information and privacy risks. This aspect of cyber insurance protects your company in case of a network security breach, such as a malware infection, data breach, ransomware, cyber extortion demand.
- Liability for invasion of privacy:
Privacy liability coverage is also essential for most businesses, particularly those that face information or privacy risks.
Privacy liability coverage protects your company from liabilities arising from cyber incidents or violating privacy laws. These third-party costs can range from penalties imposed by a contractual obligation to regulatory investigations conducted by governments and law enforcement.
Here is an example of what is covered by privacy liability insurance/cyber insurance policy:
- Legal fees, fines, and/or penalties incurred as a result of a regulatory investigation conducted by the government or law enforcement, both federal and international. Consider what would happen if a foreign governmental body investigated and penalised your company for a private event or violation.
- Business Interruption on the Network
How reliant is your company on technology to function? Companies facing operational cyber risk can benefit from network business interruption coverage.
This includes loss caused by:
- Security flaws, such as a third-party hack
- Failures of the system, such as a failed software patch or human error
- Liability in the Media
This policy protect intellectual Wealth infringement rather than the patent infringement caused by advertising your services. It frequently applies to online and prints advertising, including social media posts.
- Omissions and errors
Cyber events may prevent you from meeting contractual obligations and providing customer service. E&O insurance covers claims arising from errors in or failure to perform your services.
This can include software and consulting services and more traditional professional services such as those provided by lawyers, doctors, architects, and engineers.
Many businesses are looking to address the risk aggregation caused by a service failure regarding the effect of cyber-attack on E&O claims. Consider this a cyber event that causes your service to go down and affects all your customers simultaneously, unlike a single customer having a problem with your product or service.
This risk accumulation can quickly add up, necessitating a careful approach to the purchased amount of cyber insurance in india.
The Insurance is a subject matter of temptation. For more Information and details on benefits, limitations, exclusions, , T&C, please read carefully the sales policy/ brochure wording carefully before Purchasing a sale.