- Date : 30/01/2020
- Read: 4 mins
What is cyber insurance and what it protects you from? Here are some of its benefits, costs and features you must know.
With the rise in prominence of online media, social networking, digital banking and payments, and overall penetration of internet in day-to-day life, we are automatically exposed to a whole new range of threats. Cyber threats can arise from various sources like data theft, cyberstalking, identity theft, etc. A cyber insurance policy addresses these new-age risks and protects you from potential cyber risks and threats.
Cyber insurance plans offer a wide range of protection which takes care of first and third-party liabilities that may arise out of cyber exposures. Individuals and organisations have a significant cyber presence which is susceptible to risks both of content and transactional nature. Besides, organisations also handle and store third-party information of confidential and sensitive nature, which if compromised, can lead to major reputational and litigation risk. Security breaches, unauthorised accesses and viruses are examples of threats that cause a lot of damage to the cyber presence of individuals and organisations.
Cyber insurance takes care of a number of threats:
- It protects the insured from any fraudulent or unauthorised access and leakage of personal or confidential data
- Cyber-attack on your social media presence, resulting in identity theft
- Protection against repeated threatening and harassment on digital platforms
- Damages caused by malicious programs that penetrate through mails, SMSs, downloads, etc
- Protection against wrongful payment made from your banking profile through unauthorised cyber intrusion into your profile
- Protection against phishing – unauthorised attempt to obtain your sensitive information such as username, password, credit card details, etc
- Publication of unintended digital content from your social media profile because of cyber-attack
- Unauthorised disclosure of your personal data from third-party computer systems
Related: What makes mobile banking safe?
By having a cyber-insurance you protect yourself from various costs and damages that may be incurred as a result of cyber threats. It covers you in case of any defence cost arising out of any third-party claim. It also protects you from the prosecution cost that may arise in this situation. Cost of transportation and documentation, in case of legal proceedings, is also covered under cyber-insurance. In case of damages to the computer system or infrastructure due to problems like malware, the cost of restoration is also taken care of by the insurance policy. Financial loss arising out of wrongful payment and legal fees in this regard is generally covered under the policy.
In case the cyber threats result in stress, anxiety or any other medical conditions, the policy covers the cost incurred by the insured for psychiatrist, psychologist or any other counsellor whose services are sought. The cost of incurring an IT consultant in relation to the cyber-attack is also paid off by the insurance. Most cyber insurance products cover not only your cyber liability, but also any cyber-crime expense that you had to incur. The protection extends to all computer software and hardware of the insured along with the network exposure and other digital devices. Even if the fraud or misconduct was done by its own employees, the organisation is protected by this insurance.
The premium of these plans range from a few lakhs to several crores on the higher side. For a Rs. 5 crore cover, the premium could range between Rs 5 lakh and Rs 10 lakh in case of manufacturing, consulting, accounting industry etc. Premium can, however, double in industries which are more vulnerable, like financial services, healthcare, telecom etc.
Thus, if you are into a business, profession or occupation which involves sensitive customer information, finance, IT-enabled services etc, a cyber-insurance plan will protect you from all potential cyber threats. Here are some of the best ways to improve financial security for women.