The Buyt Desk
The recent AIIMs server cyber attack case created havoc and once again spurred the question, “Is our anti-virus and password protection enough to safeguard our data and money.?”. When the servers of institutions like AIIMS with top-class cyber security can get breached, how about the safety of organizations with no such cyber security?
Organizations that were attacked by cyber fraud bore significant monetary and data losses. And from that time, the need for an insurance product that could cover losses began to arise.
Considering the market requirement, insurance companies brought Cyber Insurance Coverage. This insurance product intends to mitigate losses. It is same as health insurance coverage, where an individual gets coverage for treatment after an illness or accident. It is a contract between an organization or individual and an insurer to cover losses that happen due to cyber attacks. The insurance intends to protect organizations from the aftereffects of cyber-attack. It reduces the loss by covering costs post any cyber-attack or security breach. Along with covering expenses, this insurance also covers the legal costs associated with data theft, privacy breach, etc.
Cyber Insurance Coverage?
It covers any liabilities of the first party and third party that arises after the cyber security breach. It also covers expenses due to data breaches, human errors, electronic media claims, or business disruption. It also covers the cost of damage control, response, notification, business, and recovery.
Different Types of Cyber Insurance Coverage
The insurance companies have bifurcated cyber insurance into four categories based on the market demand.
First Party Expenses
The first-party cover includes the following things, business interruption costs, recovery costs, system damage, direct financial loss, cover for mitigation costs, and any other additional costs.
Regulatory Investigation Cover
It covers regulatory costs such as admin costs, lawyer cost, and GDPR expenses.
Crises Management Expenses
It includes forensic IT audit, security consultation, coordination with service providers, cyber extortion, cyber stalking, etc.
Privacy and Data Liability Claims
It covers the company’s legal liabilities toward the third party and includes security and privacy breaches that could result in defamation, lawsuit, IPR, etc.
Way to Raise Claim in Case of Cyber Attack
After the incident, inform your insurer the earliest possible. It will help in settling the cover smoothly. You can choose any method to connect with your insurer, email, call, etc.
Cyber Insurance for Individuals
Individuals are also affected by cyber crimes. We all do money transactions on mobile, laptops, or computers. They are all vulnerable to cyber-attack. Insurance companies have a product categorically developed for individuals that help them mitigate losses due to cyber-attack. The policy covers identity theft, malware attack, data breach by a third party, social media liability, etc. The policy also covers counseling services for individuals who face emotional set-back after such incidences.
