The evolution of financial technology or fintech, such as the digitalization of banking and insurance processes, has increased online fraud. Cyber security breaches have become a common occurrence and a cause of concern. Cyber insurance can help you mitigate these cyber-attacks.
In India, cyber insurance companies offer cyber insurance coverage for both individuals and corporates. In other words, a cyber insurance policy covers the fees and all legal costs that have to be borne by an individual or an organization facing cyber breaches and if they have been hacked, and also the theft or loss of personal or official information.
Covers individual losses
With the increased online activities, hackers can target you with ads/ links that carry malware or with phishing emails that threaten to compromise your data security. Insurance companies, thus, have cyber insurance policies to cover your financial losses due to these online frauds.
If there is a cyber-attack or hacking of the insured’s bank account, credit card, debit card, or mobile wallet by a third party, cyber insurance also provides coverage to mitigate the same. It also covers extortion or ransom losses due to the cyber extortion danger and criminal prosecution costs.
Simply put, cyber insurance policies in India cover all types of monetary losses due to e-theft and e-communication.
Covers social media hacking costs
Alongside covering the costs of dealing with an identity theft case, cyber insurance policies also offer protection against hacking of the insured’s social media by a third party and making claims against the insured. It even covers legal expenses incurred in pursuing legal action against cyber bullies or stalkers.
Exclusion
Cyber insurance policy does not cover any loss or damage insured by different insurance firms. It also does not cover mechanical failures such as electric disturbance, media failure/breakdown, a digital shutdown of online applications or any malfunction of a similar kind. Cyber insurance will not cover an insured’s fraudulent act or deliberate breach of law or regulations.
Conclusion
A cyber insurance policy covers your monetary losses and your legal defence expenditure incurred while complying with the legal formalities. Since hackers are coming up with brand new ways of creeping into your online data, which can compromise your security, cyber insurance would be an excellent strategy to stay protected online.