Insurance Product

Cyber Security Insurance – Every Individual's Necessity

All of us use the Internet for shopping, banking transactions, social media, and communication. 750+ Million individuals in India have access to internet out of which Rural India Leads with over 390+ Million net users followed by Urban India with 360+ Million netizens. Unsurprisingly, the total number of payment transactions online has crossed over 8,840 crores+ annually in India as per the RBI statistic reports.

In today’s digital age, where everything is connected to the internet, cyber security has become a crucial aspect of our lives. From financial transactions to personal information, we share everything online. But, with the rise of technology, cyber threats have also increased, making it necessary for individuals to consider cyber security insurance. Mentioned below is the trend graph that maps the occurrences of Cyber Crimes in India for the past decade (exponential increase by 1400%+ since 2012)

Source - Statista
Source - Statista

Cyber security insurance is a type of insurance that covers the financial losses incurred due to cyber-attacks or data Failure. It is designed to help individuals manage and mitigate the risks of cyber threats. Cyber security insurance policies can cover a wide range of losses, including:

Identity Theft Cover: Any unauthorised access to usage, deletion or alteration of your personal data stored in your computer system, including your digital devices. Unauthorised hack into your system and stole your identity proof like a Pan card/ Adhaar Card/ DL/ Passport, etc., causing huge liability to you.

Social Media Cover: Legal costs against identity theft occurring on your legitimate Social Media account due to a cyber-attack. Somebody hacked your social media account, like Facebook, LinkedIn, Instagram account, etc. and wrongfully used your identity.

Cyber Stalking Cover: Repeated use of digital communications to harass somebody. Someone is following you on every internet platform and harassing you with unwanted photos & videos. You can file a criminal case against that person.

IT Theft Loss Cover: Funds wrongfully paid by you as a direct result of a Third Party’s unauthorised targeted cyber attack on your computer system. You made an online transaction, however, due to an alteration in the account, the beneficiary didn’t get a remittance. The policy pays online loss of money due to cyber attacks.

Malware Cover: Programs downloaded from the internet or any other digital means in your computer system, including your digital devices, without your consent and damage your digital device. Damage to information stored in the Computer system due to malware attack.

Phishing Cover: Any attempt to obtain your sensitive information, such as usernames, passwords, and credit card details, for wrongful reasons, through electronic communication. Alluring Mass mailers and messages with attractive deals lead you to disclose your personal details, including bank account credentials.

Email Spoofing Cover : A forgery or a wrongful manipulation of an E-mail header so that the message appears to have originated from the actual source. You received an E-mail not originating from a genuine source, and you unknowingly provided your personal information including name, address, email ID, bank account details etc., being an innocent victim of such mail.

Media Liability Claims Cover: Any liability arising from the unintended publication or broadcasting of any digital content resulting from a Cyber Attack on your Computer System, including your digital devices. Somebody hacked your digital media platform and altered the information shared online, published and broadcasted. It may arise legal consequences.

Cyber Extortion Cover: A threat to cause a Privacy Breach, Data Breach or Cyber Attack. Somebody unauthorised assessed to your digital device and threatened to leak your sensetive data/ info and ask for money to release.

But, why is cyber security insurance necessary for individuals?

As technology advances, cyber threats are becoming more sophisticated, and hackers are finding new ways to exploit vulnerabilities. Cyber insurance can help individuals protect their financial assets, reputation, and personal information from these threats. Most dangerous of all is that any cyber-fraud gets identified post its occurrence only. Through the cyber-security insurance an individual may derive all of or many of the benefits and mitigate the loses to a large extent. 

Here are some of the main advantages of having cybersecurity insurance:

  • Protection against financial loss: Cybersecurity insurance provides financial protection against losses resulting from cyber-attacks. This can include the cost of data recovery, legal fees, and compensation payments to victims.
  • Coverage for legal expenses: Cyber-attacks can result in lawsuits, and cybersecurity insurance policies can provide coverage for legal expenses, including defense costs and settlement payments.
  • Assistance with data recovery: Cybersecurity insurance policies can provide assistance with data recovery, including the cost of restoring data and repairing damaged systems.
  • Protection against reputational damage: Cyber-attacks can cause significant damage to an individual’s reputation, and cybersecurity insurance can provide coverage for public relations expenses and other costs associated with repairing one’s image.
  • Peace of mind: Knowing that you have cybersecurity insurance can provide peace of mind and reduce anxiety about being targeted by cyber criminals.

Given the complex nature of the risk factors involved in the likes of the cyber-security failures, here are some key questions that individuals should consider before purchasing cyber security insurance:

  1. What type of coverage do I need?

There are different types of cyber security insurance policies available, and individuals should choose the one that best suits their needs. Some policies cover only financial losses, while others also cover legal fees and penalties. It is essential to understand the policy’s terms and conditions before purchasing it.

  1. What are the policy limits?

Policy limits refer to the maximum amount the insurance company will pay in case of a cyber incident. It is essential to choose a policy with sufficient limits to cover potential losses.

  1. What is the cost of the policy?

The cost of cyber security insurance policies varies depending on the coverage and the policy limits. Individuals should compare different policies and choose the one that offers the best value for money.

  1. Who is the insurance provider?

Choosing a trusted and reputable insurance provider is crucial to ensure that the policy is comprehensive and reliable. Individuals should research the insurance provider’s history and reputation before purchasing a policy.

In today’s digital age, cyber-attacks are becoming more frequent and sophisticated. Cybersecurity insurance for individuals is a valuable tool for protecting against the financial and personal consequences of cybercrime. With the increasing prevalence of cyber-attacks in India, it is more important than ever to consider cybersecurity insurance as a means of protecting oneself against the fallout of a cyber-attack.

In conclusion, cyber security insurance has become a necessity for individuals in today’s digitally connected world. It helps protect personal information, financial assets, and reputation from cyber threats and data Failure. Individuals should consider the key questions mentioned above before purchasing a policy. By taking proactive steps, individuals can safeguard themselves and their assets against cyber risks.

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