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December 1, 2023

Cyber Insurance Made Simple: The Coverage and Its Offerings

The digital revolution in the country has seen more and more people opting for a digital experience, be it shopping, banking or other essential activities. Most things are available in digital form as an alternative to the traditional in-person way. The internet is at the backbone of all these transactions which increases the chances of a cyber-attack.

Further, in light of the on-going pandemic and its social distancing norms, there has been a spike in use of online transactions. This coupled with elderly people using tech or first-time users has further lured cyber attackers take advantage of the situation. As published in Livemint, India’s cybersecurity chief, Lt Gen Rajesh Pant stated that around 375 cyber attacks were attempted each day during the year 2020. This makes it essential to opt for a cyber insurance cover, be it for personal use or even for large multinational corporations. This article sheds light on the coverage of cyber insurance policy along with the various offerings. To begin with, let’s understand what is cyber insurance?

Cyber insurance is an insurance coverage extended to safeguard the risks relating to information technology, its privacy and also the liabilities that might arise due to them. It is often misconstrued that these policies are only available for corporates, but instead, cyber insurance coverage can also be sought by individual users. Since most all of us have an identity on the internet, it is essential to secure it using an insurance policy. Here’s what your cyber insurance policy covers-

Unauthorised online transactions: A cyber insurance policy can help to safeguard your hard-earned money with a coverage for fraud transactions. It includes securing the various means like debit or credit cards, e-wallets and even your bank account.

Phishing and email spoofing: Cyber policies also protect against phishing attacks wherein access to sensitive data is sought with a malicious intent. A phishing attack generally compromises critical information like usernames, email passwords, bank credentials and more. When it comes to email spoofing, the sender impersonated to be someone with authority or credibility demanding sensitive information thereby tricking the user. This can prove to be a threat leading to leaking of confidential and critical information. A cyber insurance policy can help safeguard against losses caused due to these events.

Reputation damage: The information leaked above can be used to tarnish an image with some malicious intent. While it may not be tangible, but can have a grave impact, especially in a world where repute is of prime importance not only for businesses but also individuals.

Identity theft: Access of data can be used by hackers to pose someone who they aren’t thereby trying to falsify someone’s identity. A cyber insurance policy can help to prevent the liabilities that may arise due to such damages caused to the insured.

Cyber extortion: Lastly, cyber insurance coverage includes protection from cyber extortion too wherein the intent behind the cyber attack is to extort money to prevent the leak.

While the above are the different forms of cyber attacks that may be faced in today’s times, it is essential that you insure personal as well as professional data using a cyber insurance policy. At present, there are a limited number of insurers offering this insurance coverage. This coverage can be customised based on your requirement and must be selected based on the type of attack that can be launched on the data in your possession. 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.

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