Why is Cyber Insurance a must-have in today’s digital-first era and what does it cover
-Mr. Subramanyam Brahmajosyula, Head – Underwriting & Reinsurance, SBI General Insurance
Cybercrime has become a big threat as societal usage of technology has increased. We are more technologically reliant than ever before, and that has also exposed us to risks arising from sharing of sensitive data and information on the internet. All our information, including social media passwords, bank account information, location, identification certificates, and other sensitive data, is saved online on easily accessible applications. In fact, with cloud services managing sensitive data and personal information security flaws might result in cyber-attacks and criminal activity in catastrophic situations.
Cyber security incidents jumped to 14.02 lakh in 2021, from 2.08 lakh in 2018, according to CERT-In. The usage and reliance of data online has peaked multifold especially during the work from home scenario and thus has made cyber insurance a much-required product to protect against the financial ruin that data loss or breach may inflict. Cyber insurance is becoming increasingly important and necessary for all individuals as the danger of cyberattacks against apps, devices, networks and users escalates. This is due to the fact that a data breach, loss or theft may have a significant impact, ranging from financial loss to reputational loss.
This is where cyber insurance comes in to assist you in recouping your financial losses and helps you to recover from the unfortunate incident. Cyber Insurance is aimed at protecting the Individuals from cybercrime or incidents such as ransomware, malware, identity theft and more. The policy is designed to cover the fees, liabilities, financial losses and legal charges associated with cyber incidents.
Cyber Insurance is a key to secure yourself and your family from any unforeseen cyber incidents in course of your online activities and digital transactions.
Cyber VaultEdge insurance comes with new-age risk covers and can be customized to specific risks and needs you want to protect. In-fact having the policy is a smart way to ‘Cyber-insure’ yourself and your family members.
What does cyber insurance cover?
Unauthorized transactions: Insurance coverage includes any direct financial loss incurred because of a transaction that was not initiated or authorized by the insured.
Cyberbullying: The insurance covers cost of removing objectionable content posted by cyber-bullies and psychological consultation costs. Policy also covers legal costs, fees, costs and expenses for a necessary relocation of an educational institution if required.
Identity theft: Cover credit monitoring costs, legal prosecution costs etc arising from the misuse of your personal information on the internet by a third party. Policy also covers financial losses along with psychological consultation costs for the affected victim.
Privacy / Data Breach Liability cover: It covers the costs of an initial consultation with a lawyer, as well as the costs of pursuing or defending a legal action brought against you by a third party.
Data restoration expenses: Cyber insurance covers the costs and expenses of IT Expert involved in recovering your lost or corrupted data because of malware attacks on the personal device of policyholder.
The importance of protecting your data and reputation cannot be overstated. Purchasing cyber insurance can keep you secure and protected from financial losses arising due to cyber threats as we continue to live in an increasingly digital world.