Cyber Security Insurance policy
CYBER SECURITY INSURANCE
Data breaches and cyber attacks are most common these days. The technological development has given rise to a cyber world constituting cyber space. Internet users are increasing tremendously every year and there is also rise in the number of people using mobiles and smartphones. With the increase in user database, risk of data breaches, cyber attacks expose individuals to compromised privacy, theft of intellectual property and property damage.
Cyber attacks or data breaches cannot solely be attributed to the criminal hackers, discharging malware or malicious code into your system. Regardless of who breached the data, once your data is stolen, you are the one who is responsible and will incur costly expenses to restore the lost data.
Products today require something beyond the identity theft protection that’s how Cyber Security Insurance has come into play for individuals.
Cyber security insurance is useful for individuals who may have a lot to lose if their systems are attacked. The individual’s fear of losing online data or having their bank accounts emptied and hackers find success with affluent customers who have a lot to lose. Thereby it is anticipated that in the upcoming years consumers will come to regard Cyber Security Insurance as a necessary expense.
The Cyber Security Insurance cover for individuals ranges from data restoration after an attack, to advice if the customer is a victim of cyber extortion or cyber bullying. It also covers Reputation management costs that will pay out on the amount of hiring a crisis consultant if compromising photos or texts are found to be leaked from the hacked device.
Cyber extortion is when an individual or group via e-mail threatens an individual that they will not be able to access their computer system fully unless that individual pays a ransom amount to protect its computer system. Cyber extortionists usually email stating that they have or can have access to confidential information and data. They threaten to exploit a security leak or launch an attack that will harm the individual’s computer network or release information unless they are paid an amount within a specific period. Many cyber security insurance policies now include both coverage for this type of claim and, more importantly, access to experts who can help you manage the situation.
Crisis management experts can help an individual sort through the steps necessary that are required to meet the legal requirements and to minimize the damage to practice and reputation of the individual in the event of a data breach. This serves as a prevention and not cure!
Cyber security insurance is a fairly new concept in India. So there’s a lot of variation among policies, and a lot of room for negotiation for those who are opting for it.
There are various new policies, which are coming up in the market and are designed as a supplement to the existing Homeowners’ Insurance policies. The amount of the policy is fixed according to the alteration limits for each key area, consisting of cyber extortion, data restoration, crisis management and cyber bullying. Usually, a separate amount is charged for data restoration.
A good policy can even cover any regulatory fines or penalties that an individual might incur because of a data breach.
Before the purchase of any policy it must be ensured that the Cyber Security Insurance policy covers laptops and mobile devices also, to have a comprehensive coverage.