All You Should Know- Cyber Insurance Coverage Checklist

The advancement of technology and increased penetration of the internet in the common man's life has led to compromising their online security. Undoubtedly, the internet has made our lives easy yet we cannot overlook the increase in cyber risks and attacks. Today, man has become dependent on the internet for all their needs. The internet has given access to everything while sitting in your comfort place. In today's time, it is our responsibility to be extra careful with our online identity. To ensure optimum security consider having a cyber insurance plan in place.

Why is a Cyber Insurance Important?

A cyber insurance policy offers a safety net against cyber threats and risks. Every time you are exposed online, having a cyber insurance plan will help to protect you from the new-age cyber perils. The first step towards buying an insurance policy is to evaluate the possible risks. You can also customize the cyber insurance coverage as per your needs. Ensure to understand what the policy offers and what is excluded within a cyber insurance plan to avoid hassles during an insurance claim. Let us now look at briefly understanding the cyber insurance coverage that you may need for complete peace of mind. *Standard T&C apply

Cyber Insurance Coverage Checklist in 2023

Ensure to have a comprehensive cyber insurance cover that will help to pay for the losses that may arise if the cyber risks are subject to any possible cyber attacks. Here’s a quick checklist for the cover that your cyber plan should offer:

1. Cyber Stalking: It is a situation wherein an individual is harassed through digital communication. The impacted individual feels unsafe no matter where they are. Having a cyber stalking cover will pay for the expenses against a third party for cyber stalking.
2. Phishing: This cover helps the insured in case of any direct or pure financial loss by being a victim of an act of phishing by a third party. The insured will also be covered for the prosecution expenses against the third party for such a cyber attack.
3. Email Spoofing: It offers cover for the financial loss sustained by the insured as an innocent victim due to an act of email spoofing by a third party. The prosecution expenses against the third party for the same also get covered.
4. Identity Theft: Any defence expenses incurred due to a claim by the affected individual or entity for a legal liability resulting from identity theft other than the legitimate social media account of the insured by a cyber attack. You will also be covered for the prosecution costs against the third party. Besides, expenses incurred towards transportation of court and photocopying of the related documents.
5. Social Media: The cover for this includes the defense costs for any claim by the affected party. It also includes prosecution costs against the third party for identity theft from social media. The expense of transportation to the court and documents photocopying will also be covered.
6. Cyber Extortion: Having a cyber extortion cover offers a safety net for the prosecution expenses against a third party. It also covers the loss that you may incur due to any cyber extortion threat.
7. Malware Attack: This helps cover the restoration expenses of the computer system that gets damaged due to a malware attack. It also offers a cover for the defence costs for any claim filed by the affected party for legal liability because of the malware in the computer system. Besides, the cost of transportation to court and photocopying of the documents remains covered.
8. Privacy Breach and Data Breach by Third Party: The insurer is offered cover for the expenses including the legal fees incurred for a claim for the damages lodged against the third party for privacy and data breach. The third party has to communicate in writing to the insured or should have acknowledged in public through print/electronic media about the occurrence of any such incident.

Note: The coverage is subject to sub-limits as per the policy schedule. It may vary from insurer to insurer. *Standard T&C apply

The Bottom Line

While purchasing a cyber liability insurance policy, ensure to check the sub-limits offered within the plan. Before you zero down on a cyber insurance plan, it is important to understand the terms and conditions mentioned in the policy wording. The need for cyber insurance coverage will differ from person to person. Know the inclusions and exclusions offered within a plan and make an informed decision. Remain cyber-secure!   *Standard T&C apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.