Cyber attacks are becoming more common, and high-profile data breaches are becoming more common. Individuals, businesses, workplaces, and other facilities' online exposures continue to rise, especially in the current pandemic crisis. As a result, the Authority formed a working group with the goal of examining the feasibility of standardizing Cyber Liability Insurance policy wording.
Cyber insurance generally covers your business's liability for a data breach involving sensitive customer information, such as Social Security numbers, credit card numbers, account numbers, driver's license numbers, and health records.
What Is Cyber Insurance?
Cyber insurance is a type of insurance that protects organizations from the effects of cyber-attacks. After a cyber-attack/breach, it assists an organization in mitigating risk exposure by setting expenses. To put it another way, cyber insurance is intended to cover the fees, expenses, and legal costs involved with cyber breaches that occur after an organization has been hacked, as well as the theft or loss of client/employee information.
A typical cybersecurity insurance policy, also known as cyber risk insurance, is designed to protect businesses from cybercrime such as ransomware, spyware, and distributed denial-of-service (DDoS) attacks. Costs of privacy investigations or litigation following an assault could also be included in the claims.
What is covered under Cyber Insurance?
The coverage protects the insured's bank account, credit card, debit card, or mobile wallet if money are stolen as a result of a cyber event/hacking of the insured's bank account, credit card, debit card, or mobile wallet by a third party. It also covers defence costs for claims made against the insured by a third party who has been a victim of identity theft fraud.
- The policy covers defence costs for claims brought against the insured by a third party or an affected party as a result of the insured's hacked social media account.
- It covers the costs of prosecuting the stalker. Malware-related data restoration costs are covered by the coverage.
- It also protects against phishing attacks. The policy safeguards against the fraudulent use of a bank account, credit card, debit card, or e-wallet by a third party to make online purchases.
- The policy covers financial losses incurred as a result of a faked email attack, as well as the cost of prosecuting the culprits.
- It covers defence costs in defamation/invasion of privacy claims brought by third parties as a result of the insured's publication/broadcasting of any digital media content.
- It protects against extortion losses as a result of the cyber extortion danger and reimburses the cost of prosecuting criminals.
- Because of the high demand for new cyber insurance products due to the ever-changing nature of cyber-attacks and new difficulties, general insurers must continue to strive to create custom-made products based on the model policy wordings and recommendations offered in the text.
- Insurers should carry out the foregoing aims in a fair and useful manner for policyholders.
What is not covered?
Prior notice of a fact or circumstance that has been accepted by the previous insurer is excluded.
Exclusions with Full Severability: The knowledge of one Insured Person is not imputed to another, and only the knowledge of the Organization's Chief Executive Officer, Chief Financial Officer, or Chief Operating Officer is imputed to the Organization.
An insured's fraudulent act or wilful breach of any such law or regulation.
Mechanical failure, progressive deterioration, electric disturbance, media failure or breakdown, or any malfunction are all examples of mechanical failure.
Should you buy Cyber Insurance in India?
Business executives are becoming more anxious than ever about hackers and other data security breaches, with cyber intrusions and data breaches seemingly dominating the media on a daily basis. This global threat is compounded for accounting firm CEOs, who are faced with the dual problem of not just preserving their own information, such as a business, but also safeguarding the information of their clients.
Any security violation in your company's technology can cost you money and, worse, cause mental distress. As a result, it's always a good idea to cover your company with the best cyber liability insurance policies in order to deal with any ramifications that may arise as a result of any technological security difficulties.