Pros & Pitfalls of Cyber Insurance

In the digital age, concern about digital crime is at an all-time high. We all rely heavily on the internet to do almost everything, right from buying groceries to transferring funds. Given our heavy reliance on the internet, we end up sharing personal and financial information online, which in turn renders us vulnerable to identity theft and the misuse of such data. Both businesses and individuals alike are vulnerable to the risk of data breach due to a steep rise in cybercrime. Hence, besides bolstering up cyber security measures, having a Cyber Insurance or Digital Insurance policy has also become important now, more than ever. However, in order to make an informed decision about buying Cyber Insurance, it important to consider both the pros and cons: –

PROS

Identity Theft Coverage

A Cyber Insurance offers financial protection against losses caused due to unauthorized access, alteration and/or deletion of personal data. Costs related to prosecution, photocopying of documents and transportation to and from court hearings will be covered.

Media Liability Coverage

In case your personal content is published or broadcast without authorization, a Cyber Insurance policy will cover prosecution-related costs.

Coverage Against Cyber Stalking

Cyberstalking has become a common menace due to easy access to social media. Personal Cyber Insurance will provide coverage for prosecution costs incurred while dealing with the aftermath of cyberstalking.

Malware Related Coverage

All costs such as restoration costs, expenses related to photocopying of documents and transportation costs will be covered in the event of a cyber security breach caused by a malware.

Cyber Extortion Coverage

A Cyber Insurance policy helps cover the costs incurred to recover your personal, financial or business-related data in case it is compromised or if you have received threats that could lead to extortion.

Third-Party Data Breach Coverage

In case your data is breached or shared by a third party without your authorization, Cyber Insurance will cover any losses arising out of the same.

CONS

Going easy on security efforts

After buying a Cyber Insurance policy, it quite possible that individuals or businesses may get complacent and reduce investments in security products, policies, and processes. However, it’s important to remember that a Cyber Insurance policy does not protect you from cyber risks, but covers the costs incurred in the aftermath of a cybersecurity breach.

Smaller companies may be at a disadvantage

Small-to-medium enterprises may not have the budgets to buy Cyber Insurance or have the increased security budgets needed to pass insurers’ assessments. As a result, not having Cyber Insurance may place them at a disadvantage vs. larger businesses. At Finserv MARKETS, Cyber Insurance plans start at just Rs. 781, making them an affordable purchase.

While Cyber Insurance does have its cons, they certainly cannot outweigh its various benefits. With the significant increase in internet penetration, social media and digital banking, every individual is unknowingly exposed to various cyber-attacks. Thus, in the digital age, a Cyber Insurance policy ensures that you get optimum protection against potential financial damages caused by cyber-crimes. If you don’t have a Cyber Insurance Policy yet, get one with Finserv MARKETS today!

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