Stay financially safe from cyberattacks with cyber insurance
From the phone you use to the laptop you work on, digital technology is everywhere. Big businesses rely heavily on the power of cloud storage and automation capabilities to carry on their operations. We do the same at an individual level. Our data is stored behind that screen lock on the phone and the passwords on the computer.
But here’s the concerning part—with cyber proliferation, cybercriminals have become more sophisticated in their methods. They know how a data breach can hurt you as badly as it can hurt an organisation’s market reputation. They often use ransomware as a means of extorting money. And with the rise in the number of cyberattacks, insurance providers have started providing coverage for data breach and ransomware.
Let us learn more about how cyber insurance covers financial losses from ransomware to data breaches.
Benefits of cyber insurance
Here are some reasons why you need to have a cyber insurance policy:
- Cyberattacks are on the rise
As institutions intensify their adoption of technology, they are also expanding the surface area for a cyberattack. A cyber event can have catastrophic consequences for a company. Buying cyber security insurance is a good way to safeguard the business’s finances in case a breach happens.
- A data breach can be damaging
If confidential data is leaked, it can damage the organisation's finances and reputation. The firm will need to take steps to control the damage, which can cost huge amounts of money. A cyber insurance policy can help in this case.
- Business interruption
Potential threats, such as malware attacks, privacy breaches, fraudulent transactions, and data alteration or deletion, can lead to business interruption and, therefore, financial losses that pile up by the hour. A cyber security insurance policy can cover expenses within the agreed-upon limits incurred due to business interruption.
Things to keep in mind while buying cyber insurance policy
- Read terms and conditions
Since it is difficult to predict how cyber risks may affect a policyholder, it is important to thoroughly read the policy’s terms and conditions. Get your doubts clarified while buying the policy.
- Budget and premium
Deciding the sum assured and the premium can be tough and requires a lot of research. It’s quite difficult to estimate damage caused by a cyberattack and that’s why estimating the amount to fix the bottlenecks becomes guesswork.
- Discounts
If you can take steps to limit the scope of a cyberattack, you reduce the liability on the insurance company and, ultimately, pay a low premium. For instance, regularly assessing cybersecurity measures, upgrading software and evaluating access to sensitive data can help reduce the risks.
Conclusion
India is going digital, with massive internet penetration. However, this has also allowed cyber criminals to intensify their attacks. Given the rising cases of data breaches, phishing and ransomware, it’s wise to get cyber security insurance to protect your firm from possible vulnerabilities.
However, cyber insurance is a niche market and not every policy covers all types of risks. Always ensure that you are well aware of the inclusions and exclusions.
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.