We live in an era where virtual is the new way of life. From individuals to business firms, everything has shifted to the online world for most of their operations. Entertainment to shopping, communication to banking every other sector and service is now available online. Although the internet revolution has eased up our lives to a great extent. We need to understand the threats it brings along.
In India, the past decade has witnessed the introduction of digitalization in all facets of life. Every corporation has adopted online technology. This makes it necessary for everyone to understand the importance of cyber insurance in India.
Cyber insurance ensures that your organization gets financial assistance in case of a data infringement or cybersecurity violation that has caused financial loss to your organization. Not only that. It also covers the costs and expenses needed for a legal procedure to get justice against the cyberattack. It acts as your personal arsenal against the malicious activities of the cyber attackers.
Cyber threats can be crucially dangerous for organizations. Organizational confidentiality can be threatened if cybersecurity is not ensured. However, even after taking every necessary step, there are still chances that the data may be leaked and misused. This may lead to huge losses for the company. In such a situation, cyber insurance comes to the rescue.
The features of cyber insurance are as follows:
Potential threats that cyber insurance can help you to overcome
You may wonder what possible cyber threats are there that can damage an organization’s confidentiality and dignity. Let us look into some common cyber threats that are prevalent in India.
Data infringement– This is a huge threat to the privacy of the organization as well as its employees. The data relating to the organization’s activities, strategies, plans, employee information, etc. can be breached.
Ransomware– In this cyber threat, malware, which is malicious software, is injected into a system to corrupt the computer system. The malware would block the organization’s access to some files and data. The hacker then demands a ransom to give the access back to the owner, hence the name ransomware.
Personal negligence– The cyber-world is becoming confusing and difficult to understand. Thus, many employees unknowingly invite cyber threats. Their lack of knowledge and expertise can lead to severe security threats to the organization.
Coverage varies from one insurer to the other. But there is a range of facilities that are covered by insurers. You should choose the one that provides maximum coverage for your organization.
Let us see what are the coverages that you can avail from the best insurer.
Often, the clauses in the cyber insurance policies have sub-limits. These sub-limits define the exact coverage of the policy. For example, claims related to e-mail spoofing and phishing are only covered up to a certain limit. This limit is pre-determined. If the loss exceeds this limit. The insurer will have to bear the losses.
Physical damage to the assets or humans is not covered under this policy. Also, any claims that can be linked or traced back to some fraudulent conduct are immediately excluded. The insurer can also impose a fine on the insured for such faulty practices.
Now comes the question of how cyber-attacks can harm the business and why cyber insurance is important to help you out. Let us first talk about the dire consequences that cyber-attacks generally lead to.
These are the consequences that can severely affect your business and downgrade the reputation of the company in the market as a result of a cyber-attack.
Data breaches and cyber-attacks are increasing day by day. In such a situation, it would be wise to buy cyber insurance in India. Cyber insurance ensures technological security and minimizes the financial loss that you may face due to a cyber-attack.
As organizations are increasingly using technology to conduct their activities, it is important to ensure maximum security as important details and data are involved. However, with the advancement of technology, cyber attackers have also evolved. Thus, taking precautions is the best solution.
And, undoubtedly, cyber insurance can help you out in case of a cyber-attack. You would be able to maintain the reputation and dignity of the organization. The company would also take liabilities for the damages thus minimizing the losses.
Thus select a cyber insurance policy that would fulfill your requirements and meet your organizational demands.
Are you looking for a new insurance policy or a policy renewal? Reach out to us and let us assist you.