What is cyber insurance?
Cyber insurance acts as a safety net for both individuals and businesses, protecting them against cyberattacks and online fraud. With the increasing number of cyberattacks today, both data and finances are more vulnerable than ever. Cyber insurance helps protect against risks like data breaches, cyber extortion, and disruptions to your daily life or business.
As the world becomes more digital, having cyber insurance gives you peace of mind against the growing number of cyberattacks. Whether you are an individual or a business, the right coverage protects you from the financial and personal effects of cyber incidents.
What is corporate cyber insurance?
A corporate cyber insurance policy protects your business from financial losses and liabilities caused by a cybersecurity breach. It covers costs like legal fees and recovery expenses, helping your business recover quickly and reduce long-term damage, especially if third parties are affected. With the right coverage, your business will be better prepared and safer against digital risks.
Corporate cyber insurance – inclusions
The following are the inclusions of a cyber insurance policy:
- Personal security and privacy liability: The insurance covers losses caused by a security or privacy breach by the insured.
- Multimedia activity coverage: The insurance policy covers losses from the insured’s multimedia activities.
- Corporate security protection: The insurer pays for losses caused by a security breach that leads to unauthorised sharing of corporate information.
- Additional cyber incident costs: The policy also covers extra costs, like ransom payments, investigation fees and other expenses related to handling a cyber incident.
Corporate cyber insurance – exclusions
A corporate cyber insurance policy does not cover the following:
- Unfair competition and antitrust violations: The policy does not cover any actual or alleged instances of unfair competition, antitrust violations, deceptive trade practices or breaches of antitrust laws or regulations.
- Insolvency or receivership: Losses related to the insolvency or receivership of the insured are not covered.
- Criminal acts: Any losses arising from criminal actions, including intentional misconduct or fraudulent activities by the insured, are excluded.
- Pre-existing issues: The policy will not cover any incidents or damages related to issues that existed before the insurance policy was purchased.
- Data loss due to non-compliance: The policy does not cover losses resulting from the insured’s failure to comply with data protection laws or regulations.
How corporate cyber insurance safeguards your business?
Corporate cyber insurance is designed to protect businesses from the growing risks associated with cyberattacks, data breaches, and other digital threats. Here's how it helps safeguard your business:
- Financial protection: Corporate cyber insurance helps cover the costs associated with a cyberattack, such as legal fees, recovery expenses and data restoration costs. This can save your business from significant financial loss and prevent it from draining your resources during a crisis.
- Data breach coverage: If your business suffers a data breach, cyber insurance covers the costs of notifying affected individuals, offering credit monitoring and any legal claims that may arise as a result. It ensures that your business can comply with regulatory requirements and protect customer trust.
- Business interruption: If your business operations are disrupted due to a cyberattack, cyber insurance can cover lost income and extra costs needed to restore operations and get things back on track. This helps prevent long-term financial damage while your business recovers from the incident.
- Reputation management: Cyberattacks can damage your business's reputation. Cyber insurance often includes services like public relations support to help manage the damage and restore your company’s image. It also helps you maintain customer confidence and loyalty even after a crisis.
- Protection against cyber extortion: If your business faces a ransomware attack or other forms of cyber extortion, corporate cyber insurance can cover the ransom payment and the costs related to handling the attack. This protection ensures you have the necessary resources to act fast and reduce the damage caused by a cyberattack.
- Legal protection: Cyber insurance helps cover legal costs if you are sued or face fines after a data breach or cyber incident. It also helps your business stay compliant with industry rules, lowering the chance of penalties.
- 24/7 Support: Many cyber insurance policies include access to a network of experts, like cybersecurity specialists and legal professionals, who can help manage the incident and minimise damage. This ensures you have the support you need throughout the recovery process.
Conclusion
As businesses embrace digital growth, corporate cyber insurance is a great way to stay safe from online risks. It covers issues like data breaches, legal fees and reputation damage, plus you get access to experts who can help whenever you need them. With the right coverage, you can focus on growing your business, knowing you are protected from the unexpected challenges of the digital world.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.