Cyber insurance protects your company from any direct or third-party liabilities that may arise because of cyberattacks. These attacks directly lead to financial losses and affect the reputation of a company adversely. In case of such attacks, cyber security insurance offers coverage that covers the company’s monetary expenses like fees, expenses, and legal costs that arise because of a cyber breach. The insurance also covers loss or theft of any client or employee’s information that is caused due to the hacking of the company’s data.
Why is cyber insurance needed?
Most companies rely on Internet-based technologies for conducting their everyday activities. Be it reaching out to customers or conducting everyday digital marketing activities. All the digital tools that a company uses are directly at the risk of cyber threats. Hence, having cyber insurance has become a necessity in today’s technological-driven environment.
What are the features of cyber security insurance?
While there are different types of insurance and their specific features vary accordingly. Here are the primary features of a cyber insurance plan:
- Coverage of the financial cost.
- Ensures cyber security and safety.
- Protects against any cyber crimes and cyber threats.
- Safeguards organisations from being hampered because of damages caused by a cyber-attack.
- Facilitates easy online purchase.
* Standard T&C Apply
What is cyber insurance coverage used for?
Cyber insurance coverage is used to cover any financial loss that is caused due to the loss of sensitive information through a data breach. It covers litigation costs, any fines incurred on the company, penalties laid on the company, or any other costs directly incurred due to the cyber-attack.
What are the types of cyber security insurance?
Cyber security insurance can be divided into two broad categories:
- Individual cyber insurance– It is insurance that is meant for everyday online users. It covers an individual from risks linked with fraudulent activities on the internet.
- Cyber liability insurance– This insurance is usually bought by IT firms or companies that are at risk of cyber-attacks. A company’s liability towards the financial and customer data stored in their service is covered in a cyber security insurance policy.
* Standard T&C Apply
What coverage does cyber insurance offer?
Here are some broad categories that are covered under most cyber security insurance:
- Identity theft
- Phishing
- Malware attacks
- IT theft loss
- Media liability claim
- Email spoofing
- Social media liability
- Cyberstalking
- Cyber extortion
- Privacy and data breach by a third-party
* Standard T&C Apply
What documents are needed for filing a claim?
A cyber insurance plan has an easy settlement process. You need to submit the claim within 90 days of the cyberattack and the request must be in writing. Here are the documents needed for filing a claim:
- Forensic reports
- Screenshots of findings
- Duly filled claim form
- Details and pieces of evidence of losses like people involved, dates, any acts or circumstances, and mitigation practices.
* Standard T&C Apply
After filing the insurance claim under the cyber insurance policy, the insurance company takes around 30 days to investigate and make payments under the claim.
The cyber security insurance is an effective way to safeguard your company’s data. Along with it, it is important to take effective cyber security measures to prevent any cyber crisis. Insurance is the subject of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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