Cyber crime is an escalating threat in today’s interconnected world. With the increasing reliance on the internet, individuals, businesses, and governments face significant risks. Cyber criminals exploit vulnerabilities in digital systems to steal sensitive data, commit financial fraud, conduct identity theft, and disrupt critical infrastructure. Hence, it’s important that apart from following digital best practices like installing firewalls, anti-virus software, and setting strong passwords you also need to opt for Cyber Insurance.
Further, the impact of cybercrime extends beyond financial losses, causing reputational damage and eroding trust. To combat this threat, robust cybersecurity measures, such as strong encryption, regular system updates, and user awareness, are essential to protect against cyberattacks and ensure a secure digital environment for individuals and organizations alike.
There is no denying that cyber crime is rising steadily in India. The number of reported cyber crimes increased by 6.3% between 2015 and 2016. This number almost doubled in 2017. This has led to the rising importance of Cyber Insurance in India.
As per a more recent PWC-DSCI report titled “Cyber Security India Market”, released in December 2019, the incidence of cyber attacks has tripled over the previous years. Over 75% of respondents believe they need to protect themselves from cyber threats, the report said.
What is Cyber Insurance?
Cyber insurance, as the name suggests, provides you with cover against cyber threats and cyber attacks. It helps individuals protect their reputation and finances in case of a data breach or misuse of stolen information.
A majority of cyber crimes are committed to siphoning funds. Cyber liability insurance is similar to other insurance policies and offers coverage against most scenarios excluding a few. Thus, it is essential that you are aware of these conditions before opting to buy a cyber insurance policy.
Broad categories of cyber crime in India include hacking, phishing, identity theft, online fraud, cyber bullying, data breaches, and spreading of malicious software. These activities aim to gain unauthorized access, steal personal information, deceive individuals, manipulate systems, and cause financial or reputational harm. Adequate cyber security measures and public awareness are crucial for prevention and addressing cyber threats effectively.
Inclusions and Exclusions
A cyber insurance policy plan will provide you protection against losses from unauthorized online transactions. This cover is valid for online transactions, involving bank accounts or debit and credit cards. The cover also applies to transactions done through third-party apps.
A cyber attack may also put your reputation at stake. Besides, a third party may get access to your confidential information and cause further damage to your image and finances.
Therefore, a cyber insurance policy is important to cover your losses in case of identity theft, cyberstalking, damage to social media reputation, or the introduction of malware. It also takes care of expenses in the wake of IT theft, cyber extortion, phishing, e-mail spoofing, cyberbullying, and data breach.
However, there are certain scenarios or conditions during which your cybercrime insurance plan may not have your back. Such a policy does not cover improper conduct or dishonesty, unauthorized data collection, unsolicited communication, damage to property, and injuries.
How to claim in your policy
We recommend that in case of a cyberattack you must alert your insurer at the earliest. This helps the experts to analyze the situation quickly and makes the claim process smoother.
You can inform your insurer either via email or by calling the company’s customer care desk. A written notice is also acceptable.
You might have to submit a copy of the FIR along with other relevant documents as advised by a representative of the insurer.
SecureNow provides easy access to cyber insurance quotes that are available on the website. To get a quote for your firm or organization you can also call us at 96966 83999. We can help you find a good cyber insurance policy with one of the reputed insurers.
About The Author
Arshdeep
MBA Insurance Management
Arshdeep is a seasoned insurance expert with 7 years of experience, specializing in Cyber Risk Insurance. As a writer for SecureNow, he delivers insightful blogs and articles that demystify the complexities of cyber risk coverage. His content is designed to help businesses understand the importance of protecting against cyber threats and data breaches. With a focus on practical advice and the latest industry trends, Arshdeep empowers readers to make informed decisions about their cyber insurance needs, ensuring robust protection in an increasingly digital world.
