Cyber Insurance Policy – A Necessity for All

Today most of us depend heavily on the Internet to manage our routine lives, be it shopping, bank transactions, entertainment, or communication. You will be surprised to know that India has over 750+ Million internet users spread across the country. Undoubtedly, the Internet has brought much ease in our lives, which is the reason behind the ever-rising popularity of the World Wide Web. However, like everything under the sun, the ubiquitous rise of the Internet also has a flip side; in today's digital age, where everything is connected to the Internet, cyber security has surfaced as a serious concern. Over the last few years, cyber-crimes have increased by many folds, both at the organizational as well as individual levels, and we must learn how to manage and mitigate this looming threat. One product that helps effectively manage cyber risks is cyber insurance; let us see what cyber insurance is all about. Cyber insurance is a type of insurance that covers the financial losses incurred due to cyber-attacks or data failure. It is designed to help individuals manage and mitigate the risks of cyber threats. A cyber insurance policy offers an individual a wide range of covers, including Identity Theft Cover, Social Media Cover, Cyber Stalking Cover, IT Theft Loss Cover, Malware Cover, Phishing Cover, Email Spoofing Cover, Media Liability Claims Cover, and cyber extortion cover. Now that we know what the policy typically covers, let us take a quick glance at the various advantages of the policy:- Peace of mind: Knowing that you have cyber insurance gives you peace of mind and reduces anxiety as you know that in case of a cyber-attack, your policy is there to protect you. Protects you against financial loss: The policy could help you protect against losses resulting from cyber-attacks. On a case to case basis this can include the cost of data recovery, legal fees, and compensation payments to victims. Provides Assistance at the time of crisis: You could get assistance with data recovery, including the cost of restoration of data and repair damaged systems etc. Given the complex nature of the risk factors involved in the likes of the cyber-security failures, here are some key questions that you should consider before purchasing a cyber-insurance policy: What type of coverage do I need? There are different types of cybersecurity insurance policies available, and individuals should choose the one that best suits their needs. Some policies cover only financial losses, while others also cover legal fees and penalties. It is essential to understand the policy's terms and conditions before purchasing it. What are the policy limits? Policy limits refer to the maximum amount the insurance company will pay in case of a cyber-incident. Opt for a policy that has sufficient limits and broad sub-limits to ensure proper protection; a policy with a low sum insured will practically be of little or no use in case of an unfortunate event. You can speak with your insurance advisor or insurance company representative to help you choose the right limits. What is the cost of the policy? The cost of a cyber-insurance policy varies depending on the coverage and the policy limits. One should compare different policies and choose the one that offers the best coverage. How to pick the right insurance provider? Choosing a trusted and reputable insurance provider is crucial to ensure that during the time of claim, you don't have to go through much hassle. A quick research about the claim paying capacity of the insurer, their products and services is highly recommended before shortlisting the insurance company. In conclusion, a cyber-insurance cover has become necessary for everyone in today's digitally connected world. It helps protect personal information, financial assets, and reputation from cyber threats and data failure. So now that you know the importance of a cyber-insurance policy, I urge you to evaluate your requirements and search for the apt cover to protect you against ever-increasing cyber threats, since having the right cyber insurance cover can work as a shield and help one recover after a breach. *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.  

By Mr. Aditya Sharma, Chief Distribution Officer – Retail Sales, Bajaj Allianz General Insurance