What is Cyber Insurance & Why is it Important?
Cyber Insurance

What is Cyber Insurance & Why is it Important?

Almost every aspect of today’s economy depends on the internet. Data between more than two parties can transmit at lightning–fast speeds, be it transferring money to your friends, trading on the stock market, or watching your favourite shows. As our reliance on the internet keeps growing, hackers and fraudsters keep finding new ways to loot users. Therefore, protecting your online data is more important than ever before. Here, we talk about cyber insurance and how it protects you from internet crimes.

What is Cyber Insurance?

Cyber insurance is a contract between an individual (the insured) and an insurance provider (insurer). The insurer agrees to pay a sum of money to cover financial losses that the insured incurs in the event of cyber–attacks.

Organizations that hold large customer databases are highly susceptible to cybercrimes like data breaches and cyber extortion. Individuals, too, can fall prey to online scams. In such cases, cyber insurance can help cover losses up to a certain sum insured. The policy covers legal expenses, psychological treatment costs in case of cyberbullying, ransom paid towards cyberextortion, losses incurred due to online scams, etc.

What Does Cyber Insurance Cover?

Cyber insurance covers a range of internet–based crimes. Your insurance provider typically indemnifies you for financial losses incurred post cyberattacks.

  • The policy can compensate for funds stolen from your bank account, mobile wallets, credit cards post phishing or email spoofing.

  • If you must take legal action, the policy covers the lawyer’s fee along with any other legal costs.

  • If a cybercrime has caused hardware damage, the insurer can pay costs associated with data restoration. Instances include computer or phone breakdown during hacking, privacy breach in case of smart homes or business machinery damages in case of cyber extortion.

  • Cyberbullying can cause financial as well as emotional scars. The policy can cover legal proceedings, psychological assistance and school or college relocation costs.

  • Hackers may extort money from businesses. Cyber insurance can cover necessary costs to resolve cyber extortion. Any ransom you may have ended up paying in fear of customers’ details getting exposed can also be covered by cyber insurance.

  • Cyber insurance can also protect you against copyright violations your social media posts may have caused.

  • As a business owner, a cyber insurance policy can take care of financial losses you incur because of fraudulent buyers who refuse to pay for your products and services.

Why is Cyber Insurance Important?

Cybercrimes can cause immense damage. Crimes like data breaches and extortion can cause companies to lose customers or go bankrupt. On a personal level, it can cost an individual their reputation and mental health. A cyber insurance policy can help you deal with the financial losses incurred due to a cyber–attack. It can help businesses of all sizes, especially e–commerce ones, protect customer data.

Buy Cyber Insurance Now!

As an individual or a business owner susceptible to any form of cyber risk, you must consider buying a cyber risk insurance policy. With cyber Insurance, you can sleep at night peacefully knowing that your online presence is protected.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.

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