Cyber Insurance: Experts believe that not only individuals but companies also need to protect themselves from cyber attacks. Cyber insurance effectively protects companies from cyber risk.
Cyber Insurance: Cases of cybercrime are being seen and heard everyday. As technology is getting more advanced, the safety standards are also getting stronger. But, still cyber criminals are executing cybercrime in new ways.
In such a situation, it is necessary that there is such a cover in cyberspace, which protects us from sudden financial risks. Indeed, cyber insurance is one of the instruments that mitigates the financial risk of companies in the event of any data breach, ransomware attack, investigation, lawsuits and even extortion payments.
In a rapidly changing digital world, cyber security is a priority for most businesses as well as individuals. Experts believe that not only individuals but companies also need to protect themselves from cyber attacks. Cyber insurance effectively protects companies from cyber risk.
Eva Saiwal, Practice Leader (Liability & Financial Risk), Policybazaar.com, says, “The government has acknowledged the importance of digital data security. Recently, the draft of Digital Personal Data Protection Bill 2022 has been released regarding this. This bill has provisions to take necessary steps for the protection of digital personal data.
With the increasing number of data breaches, it is important to understand that not only individuals but companies also need to protect themselves from these cyber attacks. Cyber insurance effectively provides safety cover to companies from cyber risk. Government statistics show that by June 2022, more than 6.7 lakh cyber safety cases were given in India.
What is cyber insurance?
Eva Siwal says, it is an insurance policy that reduces the financial risk for a business or individual. It also covers against costs related to a data breach, ransomware attack, or other cyber damages and recovery, lawsuits, compliance regulatory penalties, forensic costs, and extortion payments and investigation costs.
Cyber insurance is becoming increasingly popular in India and companies are opting to insure themselves against cybercrime. The price tag on cyber security has been increasing steadily in the last few years as cyber crimes are also increasing equally fast.
What is covered in cyber insurance
According to Eva Siwal, there are two types of cyber insurance coverage. Third party liability cover and first-party cover. First-party cover security is available in case of data hack of any company. On the other hand, if a customer, seller partner or a third party sues the company for allowing data breach, then third party cover is available in such cases. A comprehensive cyber insurance should offer both of these coverages to help reduce the cost of data breaches.
In the last few years, insurance companies have launched cyber insurance as a product to meet the growing need of cyber attacks in the digital space. This type of insurance is becoming essential for certain industries and for people who want to be safe from possible financial losses after such attacks.
