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Why Do You Need Cyber Insurance

By Finserv MARKETS - Jan 25,2019
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Why Do You Need Cyber Insurance

Given the rapid increase in cyber crime today, cyber security has become more important than ever; specially to prevent private and confidential information from being divulged or compromised in any way, both on the personal and professional front. Most of our transactions are carried out on online portals that have questionable safety standards. Perils of embedded malware and phishing are constantly jeopardizing our digital security.

A cyber insurance plan is designed to cover the risk encountered in case of a security breach. The monetary losses incurred in such a case can be recovered if you have a digital insurance policy. Ever since 2005, cyber insurance has been purchased by individuals to recover from unwanted security breaches that happen almost every other day. If you don’t have a Cyber Insurance plan yet, here are some important reasons to get one:-

  • Data breaches can lead to potentially huge losses – According to Ponemon Institute’s 2017 Cost of Data Breach Study, the average cost of a data breach in the country rose nearly 8% year-on-year to Rs. 11.9 crores ($1.7 million). These losses include costs like stolen records, customer defections, investigation costs, opportunity loss, legal action, reputation management and customer support, among others.
  • The instances of cyber breaches are increasing exponentially – According to a survey conducted by defense grade technology, the incidences of cyber-security breaches in India are higher than the global average.
  • Cyber Insurance offers comprehensive protection – Cyber insurance offers comprehensive protection against a wide range of risks. A Cyber Insurance policy covers the losses incurred due to identity theft, cyber stalking, malware attack, email spoofing, cyber extortion, privacy and data breach by the third party and various other costs incurred due to data breach. With Finserv MARKETS, you can get a cyber-insurance plan that covers you in the event of these cyber-security threats.
  • Cyber insurance compensates legal and other monetary losses – Cyber insurance reimburses the losses incurred by first parties as well as third party claimants. An investigation procedure where damage repair is delved into, can be covered with a Cyber Insurance. Financial losses are assessed, also taking into account the damage to the reputation of the individual in question and the lost data that is to be recovered. Cyber insurance also covers the legal expenses as well as the cost of notifying those customers who are the victims of a data-breach.
  • Minimizes online risk- Most business organizations connect with their potential customers on various social media platforms and many times monetary transactions are carried out through the same medium as well. This gives hackers the scope to launch cyber-attacks. The graver the position, the severity of the risk also increases exponentially. Hence, to reduce their vulnerability factor, individuals need to have a cyber-insurance in place.

While buying cyber insurance online, one should understand that the coverage varies from insurer to insurer. Usually, most insurers cover the above-mentioned concerns. Additionally, there can also be deductibles attached and hence you must compare insurance plans before buying them online. Certain policies can be time bound – that can roll into months or years. You should pick a digital insurance policy that will give you comprehensive coverage and protect your online accounts.

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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522