With internet becoming the backbone for majority of the global trade, there is a need for digitisation in all domains. While the digital revolution can help cut short processing times, internet is what offers connectivity. With almost everything from buying yourself a t-shirt to entering into financial contracts being seamlessly carried over the internet, it has created new threats for unauthorised access to information and data. This data might be either personal data or even payment related. Whatever be the case, letting your information get in the wrong hands can mean threat. And if you are an organisation that manages data for its clients, you have a legal liability for its confidentiality. Thus, protection all your internet activity has become crucial. Such seepage of information can even attract financial liability. Hence, buying a cyber insurance policy is the need of the hour to live in this digital age.
What is a cyber liability insurance?
A cyber liability policy is the one that covers financial losses that may result from a data breach or other potential cyber threats. Depending on the insurance company, a cyber insurance plan offers first-party coverage or third-party coverage or both. A first-party cover is that which the insured is compensated for any damages as a result of cyber events whereas a third-party cover compensates people outside the contract of insurance.
The coverage of a cyber insurance plan
A cyber insurance coverage covers the following events:
- Identity theft
Identity theft is one of the crimes that are prevalent in the cyber space. This gives access to hackers to imitate an unsuspecting person and attack a third person thereby attaining untrue identity. Such events of identity theft are covered under the scope of a cyber insurance policy. Any costs associated when claims are raised by third parties are also included therein.*
- Cyber stalking
Some individuals use the internet to harass or frighten an online user. With a cyber insurance policy, any costs associated with raising a complaint with the concerned cyber department is covered.*
- Malware attacks
Software programme are required to simplify various tasks. When such software that are essentially designed to leak data or damage the information technology system of an organisation are installed, they result in loss of critical information. Liabilities that arise on the organisation as well as the loss faced by it are included in the malware coverage under cyber insurance plans.*
- Phishing attacks
Phishing attacks are designed to steal user data, login credentials and other information including payment details. The access to information systems is gained by hackers masquerading themselves as a trusted entity thereby enabling access into the information system. A cyber insurance plan protects against such phishing attacks compromising the information and its confidentiality.*
- Cyber extortion
A cyber insurance policy also provides cover for cyber extortion that are attacks designed with a purpose of extorting money in return for compromise of critical organisational data.*
- Media liability claims
A cyber insurance cover protects the policyholder against unintended publication or broadcast of content in digital form that may result in a cyber-attack.*
* Standard T&C Apply
These are some of the different coverage that are available with a cyber insurance policy. Akin to other types of general insurance plans, remember that cyber insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.