Cyber Insurance and it’s benefits.

In today’s digital world, cyber threats are everywhere. Cyber insurance acts as a safety net, helping businesses financially recover from data breaches, hacking attacks, and other online misfortunes. Let’s look at cyber insurance and how it can help you from cyber threats.

What is cyber insurance?

It’s a product that helps businesses & individuals prevent themselves from attacks that occur online. It protects organizations from the cost of internet-based threats affecting IT infrastructure, information governance, and information policy, which are usually not covered by commercial liability policies and traditional insurance products.

Cyber insurance coverage works the same way as businesses would purchase insurance against physical risks and natural disasters. It covers the losses an enterprise may suffer as a result of a cyberattack.

Why is cyber insurance necessary?

Cyber insurance is increasingly becoming essential for all companies as the risk of cyberattacks against applications, devices, networks, and users grows.

Nowadays, people rely heavily on the internet to manage their lives, do shopping, message their friends & family, do transactions, etc… India has over 750+ Million internet users spread across the country. The Internet has made our lives easier but at the same time, it has a flip side; in today’s digital age, where everything is connected to the Internet, cyber security has surfaced as a serious concern. Over the last few years, cyber crimes have increased by many folds, both at the organizational as well as individual levels, and we must learn how to manage and mitigate this looming threat.

Advantages of cyber insurance:

  • Peace of mind

Cyber attacks can happen to any business or person, regardless of age, gender and race. Having cyber insurance gives you peace of mind and reduces the anxiety in case of a cyber-attack.

  • Protection against financial loss

This could help you protect against losses resulting from cyber-attacks. On a case-to-case basis, this can include the cost of data recovery, legal fees, and compensation payments to victims.

  • Legal Protection

In the event of a cyber-attack, your business could be held liable for damages resulting from the breach. Cyber insurance helps you in costs associated with covering your legal defense, settlements, or judgments against your business.

  • Recovery Assistance

Cyber insurance policies also offer recovery assistance after a cyber attack. This could include access to cybersecurity experts, public relations professionals, legal advisors, and more. These specialists can help restore your operations, uphold your public image, and ensure you meet any legal obligations following a cyber incident.

  • Business Continuity 

Cyber attacks can interrupt businesses which could lead to huge losses and disrupt business operations for a long time. Cyber insurance can cover business interruption losses, keeping you financially afloat while recovery efforts are underway. This includes lost income and costs associated with operating from a temporary location or employing additional staff for recovery efforts.

  • Compliance with Industry Standards

Cyber insurance can help your business stay compliant with industry standards and regulations.

  • Extortion

Cyber insurance helps you cover losses that result from ransomware attacks.