Types of Cyber Insurance

Digitisation is the new trend. The traditional ways of conducting business have been replaced with online and more interactive one. Also, there is an increase in the number of transactions. These voluminous transactions have posed a security threat for the sender as well as the receiver. Not only transactions, but online is the new way of carrying out the business. To expand your business, online is the new route.   With increased reliance on internet technology, it also poses a risk for everyone whose data is involved. Moreover, these data can sometimes be sensitive that if transferred to wrong hands, can be risky.   To tackle these problems, one needs to install appropriate security layers to the information architecture. But there have been several cases in the past of data leaks. These data leaks are carried by unethical individuals or hackers that are always looking for security flaws in the systems. To add another security layer, a cyber insurance policy comes handy.   What is cyber security insurance? Cyber insurance is a specialised type of insurance policy that protects not only business entities but also individuals. The risks against which insurance cover can be obtained vary from each insurer. You can compare the myriad options before purchasing your desired cyber security insurance cover.   Types of cyber insurance in India    #1 Cyber Security  Cyber security insurance is also known as Privacy Notification and Crisis Management Expense Insurance. This policy provides third-party cyber insurance coverage for any damage to business as well as individuals. The policy does not insure you from any damage that might be caused to third-parties. Thus, the responsibility for these damages rests on you. It primarily deals with any immediate response costs that are associated with the damage. In some instances of a data breach, the Information Technology laws require the affected parties to be notified of such violation of data.   #2 Cyber Liability Cyber liability insurance is also known as Information Security and Privacy Insurance. Business organisations that sell their products using the internet benefit from such types of cyber insurance. Further, any business that collects user data can also benefit using this form of cyber insurance. Some common forms of a data breach like financial information, any personal information, account numbers, trade secrets, etc. can be insured using this type of cyber insurance policy.   #3 Technology Errors and Omissions This form of cyber security insurance is also known as Professional Liability. Organisations that are in the business or technology services and products can make use of this insurance cover. This insurance policy does not require the insured to bear the entire cost of a claim made for negligence and damages awarded in a suit. Creative agencies that can harm an organisation’s reputation can make use of this policy. It is one of the new and emerging types of cyber insurance. As more businesses turn to online mode, the requirement for these businesses will be specifically to secure their interest and provide a safety net in case damages are required to be paid.   In this age of digitisation, cyber insurance policies are as crucial as workers compensation insurance and other forms of general liability cover. Now that you know the what is cyber insurance and the various types of cyber insurance plans, make the best choice for you and your business keeping in mind the different requirements.