The growth of cybercrimes has evolved into a far more dangerous threat. Data breaches are the most common internet risks faced by every individual or an enterprise. While data breaches are inevitable, the financial costs incurred due to one can be mitigated with the help of cyber insurance.
Under a cyber-insurance policy, insurance companies provide the buyers with data breach coverage or cyber liability insurance. Before availing the data breach coverage, understand the basics of the policy mentioned below:
What is data breach coverage?
A data breach coverage is a monetary coverage offered to business organizations or employers in the event of data loss. It helps the distressed enterprises to cover the costs of cyber security breaches like identity protection solution, legal fees, and so on. With data breach coverage, an individual can mitigate the risks of civil litigation and other penalties.
Under data breach coverage, there are generally two main types of coverage offered to the policyholders. An individual can select from either a first-party coverage or a third-party coverage depending on his needs. While a first-party coverage includes data breach investigation costs, fines incurred by lost data, and so on, the third-party coverage comprises of lawsuits from individuals due to data loss and fees incurred in the event of loss.
Cybercrimes are unpredictable. When it hits any organization, the losses are humongous. To cover for the enormous data and financial losses, a cybersecurity cover is essential. Hence, take a look at why every business firm requires digital insurance:
Why do you need cyber liability coverage?
- There has been a significant rise in online banking frauds.
- Information Technology (IT) theft loss can cripple your enterprises permanently by incurring excessive costs.
- Cyber insurance policies offer protection against cyber extortion.
- The rapidly increasing rate of phishing mailers fools a majority of organizations to believe in the authenticity of pages.
- The cyber liability offers professional assistance to help you respond immediately to data security losses.
The process of applying for cyber insurance is easy to comprehend. An individual can follow these steps mentioned below with ease:
How to apply for cyber insurance?
- Choose the type of coverage based on your needs and preferences.
- Submit the relevant details to the insurance provider while filling a form. In case the insurer provides online services, enter the details and submit the form online.
- Make an online payment using a debit or credit card, NEFT, etc.
- Issue a policy online from the insurance company.
To sum up, cyber threats can disrupt the reputation and goodwill of the business organization. However, data breach coverage or cyber liability insurance helps a firm to avoid the risks as well as losses due to cybercrimes.
Bajaj Allianz Cyber Insurance policy available on Finserv MARKETS protects every individual from the financial implications of cyberattacks. The cyber insurance policy available on Finserv MARKETS provides higher coverage at an affordable rate to secure an enterprise from threats like phishing, ID theft, Malware attacks, etc.
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