Cyber insurance for corporations protects your company from first and third-party liabilities caused by cyber attacks, which can result in financial and reputational losses. It provides corporations with insurance protection against cyber extortion, unauthorized access, data breaches, and other threats to sensitive customer and employee data.
What is Cyber Security Insurance?
Cyber security insurance compensates businesses for expenses, fees, and legal costs incurred as a result of cyber breaches. It also includes the loss or theft of client/employee information as a result of data hacking in the organization. Unauthorized access is a common example of a security breach. This is where cyber risk insurance comes into play.
Data security is one of the most important responsibilities of businesses because they have access to their customers'/users' private and confidential information. Cyber insurance in India is a must for such businesses.
Why is Cyber Risk Insurance necessary?
Cyber risk insurance is becoming increasingly important as more businesses rely on Internet-based technology to reach out to prospective customers and achieve their digital marketing objectives. All digital tools put these organizations at risk of cyber attacks.
Cyber Insurance Features and Benefits
The following are the main features and benefits of a cyber insurance policy
- Defense against cyber threats and cybercrime
- Financial cost protection
- Protects large and small businesses from being crippled by the damage caused by a cyber attack
- Ensures cyber safety and security
- Easy online purchase facility
What does Cyber Insurance cover?
The following are covered by the cyber insurance policy
The plan covers identity theft losses as well as lost wages, expenses for refilling rejected loan applications, costs of not arising affidavits, and other legal and financial documentation expenses, among other things.
The plan will cover expenses incurred during a threat's prevention, such as data restoration, forensics, and the cost of hiring an IT security consultant to manage the threat.
Consultation fees with a lawyer up to the stated amount are covered, as are costs incurred as a result of a false criminal charge against your company or while defending or pursuing legal actions.
If you suffer financial loss as a result of a transaction that was not authorized by you, the plan will reimburse you.
Data Restoration Costs
If a cyber threat, extortion, or other threat to your computer system is reported within 30 days, the insurer will cover the costs of data restoration.
In cases of harassment, intimidation, invasion of privacy, character defamation, and so on, the insurer will cover the cost of a psychologist consultation, rest and recuperation costs, and temporary relocation expenses if necessary.
In the event of data loss or damage, or any lost wages as a result of corruption, the insurer will cover the costs of data restoration.
Penalties for failing to make an EMI payment on a loan or penalties imposed by any financial institution for failing to maintain a minimum balance will be covered.
What does cyber insurance not cover?
The following are not covered by cyber insurance
- No coverage is provided for bodily injury, diseases, death, or damage to tangible property.
- No coverage is provided for electrical disturbances, mechanical failures, breakdowns of any kind, or media failures that resulted in any type of loss.
- Any unforeseen circumstances or prior notice from the previous insurance provider are not covered.
- The company imputes any valuable information possessed by any insured person other than the CEO, COO, and CFO.
- Any willful or fraudulent violation of any law, rule, or regulation committed by an insured
- Losses caused by negligence or a failure to take precautions to protect information such as credit and debit cards, bank accounts, internet connections, and so on.
- Willfully ignoring any knowledge or circumstances that could form the basis of a claim
- Legal proceedings that have been ongoing since before the policy was purchased
- Any unexplained loss or loss caused by a government order
- Losses incurred as a result of participating in any malicious or dishonest activity
- Trade secrets, trademarks, registered patents, actual or alleged plagiarism copyrights, or other intellectual property is not covered.
- Consequential loss or damage, including loss suffered by a third party, is not covered.
- Any matter that is legally uninsurable
- Crypto currency value loss, theft, or disappearance is not covered.
- Any tangible property loss is not covered.
Purchase of sovereign funds, securities trading, federal funds, foreign exchange, currencies, and commodities are not covered.
Tips for Improving Cyber Security
Some tips for improving cyber security and effectively preventing cyber risks are listed below
- Adhere to effective cyber security precautions. Respond to threats immediately and put a stop to them. with a suitable anti-malware programme
- Include the cost of cyber insurance in your company's budget.
- Improve cyber security expertise and take security precautions.
- Ensure security and productivity by providing employees with devices that they understand how to use.
- Increase security measures with a sufficient cyber insurance policy to ensure smooth business operations.
It's never been easier to find the right cyber security insurance policy for you at the right price. This is made possible by our friendly, knowledgeable team of advisors who act as personal shoppers, walking you through the various coverage options and explaining the costs involved, so you can choose a policy that both gives you peace of mind and is appropriate for your circumstances.
For more information contact Dhanguard we will assist you with all aspects of the insurance in UAE.