How insurance shields against data theft and online fraud during campaigns

What is cyber insurance?

Cyber insurance is a type of protection that helps shield you and your business from the financial impact of cyberattacks or data breaches. If something goes wrong in the digital world, like a hacker stealing your data, this insurance helps cover the costs so you are not left to handle everything on your own. Therefore, having this coverage gives you peace of mind, knowing that if the worst happens, you can bounce back without bearing the full financial burden.

Common types of cyber threats include:

•       Malware: Malware is malicious software that can damage your system, steal information, or give hackers access to your files.
•       Ransomware: This type of malware locks your files and demands money to unlock them, leaving you with little choice but to pay.
•       Spam and phishing: Unwanted emails or messages that trick you into sharing personal information, like passwords or credit card numbers.
•       DDoS: DDoS or Distributed Denial of Service is a cyberattack where hackers flood your website or servers with so much traffic that it crashes or stops working.
•       Spoofing: This is a cyberattack in which hackers pretend to be someone you trust to trick you into sharing sensitive information.

Cyber insurance – inclusions

The following are the key inclusions of a cyber insurance policy:

•       Response to data breach: If your data is breached, cyber insurance can cover the costs of notifying affected people, investigating how the breach happened, and offering credit monitoring to those affected.
•       Cyber extortion: In case of a ransomware attack or other forms of cyber extortion, the insurance can help cover the ransom payment and related costs.
•       Business interruption: If a cyberattack disrupts your business, the policy can help cover lost income and any extra expenses required to keep things running.
•       Legal fees and lawsuits: If you are sued because of a cyber incident, cyber insurance can cover the costs of legal defence.
•       Regulatory fines and penalties: If you face fines for violating regulations due to a data breach, cyber insurance can help cover those costs.

Cyber insurance – exclusions

A cyber insurance policy may not cover the following:

•       Unencrypted data: If your data wasn’t encrypted, some policies might exclude coverage for breaches involving that data.
•       Acts of war or terrorism: If a cyber incident is caused by war or terrorism, it might not be covered under your policy.
•       Criminal acts: If the cyber incident involves criminal actions by the insured party, the insurer will not cover it.
•       Intentional acts: Cyber insurance policies typically don’t cover incidents that were caused intentionally or knowingly by the insured party.

How insurance protects against data theft and online fraud in campaigns

Whether it is a business, marketing, fundraising or awareness campaign, insurance products, such as cyber insurance and director’s liability insurance, can safeguard against data theft and online fraud in the following ways:

1.     Financial relief from a data breach: If your campaign suffers a data breach, cyber insurance can cover the costs of notifying everyone affected, investigating how the breach happened, and restoring any compromised data. This saves you from the financial burden and allows you to take quick action to protect your reputation.
2.     Recovering from fraudulent attacks: Online fraud can take many forms, such as phishing scams, fake donations or fraudulent transactions. Cyber insurance can help cover the losses caused by these activities and pay for the expenses involved in tracking down and stopping the fraud.
3.     Managing legal costs from cyberattacks: If a cyber incident leads to a lawsuit, the insurance can cover your legal defence costs. Whether you are facing claims from individuals or businesses, having the right coverage, like cyber insurance or director’s liability insurance, helps protect you from the financial burden of defending yourself in court.
4.     Keeps your campaign running: Cyberattacks can bring your campaign operations to a halt. If your systems are down or you experience delays due to a cyber incident, the right insurance policy can help cover the income you lose and the extra costs you incur to keep things going while you recover.
5.     Managing regulatory fines and penalties: If a data breach or cyber incident results in fines or penalties from regulatory bodies, your insurance may cover these costs. This helps you avoid additional financial strain and keeps your campaign compliant with the law.

Conclusion

Cyber threats are a real concern for every campaign, big or small. From data breaches and ransomware to phishing scams and fake donations, there are some serious risks involved, and the consequences can be severe. So, it is wise not to wait until it is too late. Invest in cyber insurance in India for the financial protection and support you need if something goes wrong. With the right coverage in place, you can focus on your campaign’s goals without worrying about digital threats or potential lawsuits.

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.