Exposed to hackers and virus attacks? Take out cyber liability insurance


Exposed to hackers and virus attacks? Take out cyber liability insurance

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With the digital revolution taking the world by storm, there has been a paradigm shift in the way people communicate, transact and shop. But this over-reliance on digital has also exposed us all to cyber threats and attacks.

These days, it’s not unusual to have a virus-infected computer or to experience a data breach. To avoid losses resulting from such incidents, consideration should be given to taking out cyber insurance.

Cyber ​​insurance, also known as cyber liability insurance, helps cover financial losses resulting from cyber events and incidents. Additionally, cyber risk coverage helps cover costs associated with remediation, including payment for legal assistance, investigators, crisis communicators, and customer credits or refunds.

As the Covid pandemic has ravaged the country for the past two years, so has cybercrime, particularly after people started working from home. Cybersecurity incidents rose to 14 lakh in 2021 from 2.08 lakh in 2018, according to CERT-In.

Meanwhile, losses from cybercrime – debit card/debit card, credit card and internet banking fraud – were estimated at Rs 63 crore in 2020-21, according to data released by private and public banks .

Even as companies rushed to choose cyber covers, the focus on personal insurance only increased after insurance regulator Irdai listed guidelines for the same. last year. Unlike the corporate coverage offered by most insurers, very few companies currently offer personal or individual cyber insurance. Some of them include HDFC Ergo General Insurance, Bajaj Allianz General Insurance, ICICI Lombard General Insurance, Future Generali India Insurance.

Cyber ​​insurance providers work with clients to better understand risks and prevent breaches based on appropriate risk management frameworks. Insurers also offer services to increase cybersecurity awareness in the business, assess customer contingency plans, train staff, or recommend best practices to reduce the effect and repair the breach.

Cyber ​​insurance basically offers two types of coverage. One is first party coverage, which is coverage for losses incurred directly by you.

And then there’s third-party coverage to cover claims made by people for losses incurred by an organization’s failure to protect its data.

Some insurers have also started offering customizable plans that depend on the risk exposure and budget of the insured, and one can choose between the specific crimes they wish to cover. Policyholders can also include a computer consultation with the insurance


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