As most businesses are undergoing digital transformation, cybersecurity has become a vital aspect of business welfare. Cyber insurance in India is becoming a necessary investment to protect organization’s losses due to cyber-attacks. With the increasing number of cyber threats, most organizations are investing in cyber insurance policy in India.
If you have been wondering “What is cyber risk insurance?”, “which insurance company in India provide the best coverage?” and other queries related to cyber insurance policy India, here’s a quick guide to help you out.
Table of Contents
What is Cyber Insurance?
Cyber risk insurance in India refers to the protective layer designed for organizations to save them from data violation and other cyber attacks. The cybercrime insurance policy in India covers monetary loss due to phishing attacks and malware.
The growth of the cyber insurance market in India has been observed to be accelerated after 2020. There are records of an increasing number of digital frauds as most companies are adopting technology to execute their day-to-day operations.
Features & Benefits of Cyber Insurance in India
After understanding “what is cyber insurance?”, the next thing that comes into your mind is “what are the features and advantages of Cyber insurance policy India?”. Here’s a pointwise answer to your query.
1. Cyber insurance in India covers theft of funds or property of the company or insured individual due to hacking.
2. As most companies have moved to internet-based technology, this insurance protects companies from any security breach due to cyber attacks.
3. It protects the company/individual from legal implications in case of a data violation due to phishing attacks.
4. Insured Companies receive legal and financial assistance to deal with third-party liabilities in case of identity theft, trademark infringement, privacy invasion, etc.
5. Cyber insurance in India helps the insured organization to protects its market reputation even if there is a security breach due to any kind of cyber attack.
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What does cyber risk insurance cover?
This insurance covers the loss or damage of the registered organization or individual caused due to cybercrime activities. It ensures safety against monetary loss incurred due to malware or phishing attacks.
1. This insurance provides coverage for the digital theft of funds, data breaches, and cyber extortion.
2. It covers the legal expenses in case of any cybercrime.
3. A cybercrime insurance policy protects against identity thefts.
4. It takes care of any cost incurred for the first party, third party, and multimedia.
5. In case of any data violation, this policy covers data recovery and migration charges.
6. It provides coverage in case of sudden system breakdown due to system failure or in case of voluntary system shutdown after any breach.
What is not covered under cyber insurance in India?
Most Cyber insurance companies in India have a few exclusions in their policy.
1. The policy does not cover bodily injury, death, or damage to any tangible property.
2. Mechanical breakdown or electrical disturbances.
3. Any information possessed by company members other than CEO, CFO, and COO.
4. It does not cover any willful or fraudulent act under any law and regulations.
How much does cyber insurance cost?
The policy cost varies based on the industry type and cyber-attack preparedness. The premium of the insurance depends on the sum assured as well. For instance, corporate companies purchases cyber risk insurance policy that provides sum assured from Rs.1 lakh to Rs.200 crores.
There are multiple cyber insurance providers in India. Therefore, the cost of the policy also varies with the insurance company you choose. To get the exact quote, it is recommended to contact the insurance provider.
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Should you buy cyber insurance in India?
As most businesses are running digitally today, it’s recommended to purchase a cyber insurance policy. It not only safeguards the company from cyberattacks but also provides assistance to deal with the first party, third party, and multimedia liabilities. In this digital age, it is necessary to invest in cyber risk insurance to protect the business from any cybercrime.
Frequently Asked Questions
1. Who must invest in cyber insurance?
Any business, company, or individual depending on digital presence and transactions must invest in a good cyber insurance policy.
2. How much does cybersecurity insurance cost?
The cost of cybersecurity insurance depends on the insurance provider, sum assured, and cyber-attack coverage. To get a quote, you may directly contact the desired insurance provider.
Final Thoughts
Being prepared for cyber attacks is essential for every company today. Corporate companies invest in cyber insurance policies to enhance their preparedness against cybercrime. Hope this article has helped you to understand the importance of cyber insurance policy in India.
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