The Complete Guide to Cyber Liability Insurance

Cyber Insurance: Information Age's Comprehensive Guide to Cyber Liability Insurance

24 Jun 2019
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In a country like India that’s rapidly transforming into a digital nation, the need for cybersecurity has increased now more than ever. Both individuals and businesses need to maintain data online and use various online applications and services in their day to day activities. Therefore, it’s essential to safeguard yourself against all kinds of online frauds and threats. Right from personal data to online transactions, everything should be protected with adequate security measures. With each passing day, cybercriminals are devising new and advanced ways to infiltrate private data. Though new applications are being designed to ensure cyber safety, Cyber Insurance or Digital Insurance has become the need of the hour for individuals and more so for businesses. E-commerce companies which deal with a large volume of financial transactions are especially susceptible to cyber threats. Also, websites that amass a large volume of data are also vulnerable to data thefts. Cyber Insurance can help deal with the huge financial losses resulting from cyber security breaches.

 

 

How Does Cyber Liability Insurance Work?

 

A personal cyber liability insurance policy offers financial reimbursement for the costs associated with cyber breaches up to your policy's limits. It covers cyber-related monetary losses ranging from the theft of bank account funds, to payments made after extortion through an anonymous online threat. However, it’s important to note that no two personal cyber insurance policies are exactly alike. But most cyber insurance policies will generally cover expenses fitting under three categorizations: personal and home protection, extortion and financial loss from fraud.

 

Benefits of Cyber Liability Insurance

 

    1. Coverage against Cyber Stalking- Cyberstalking has become a common possibility due to social media. Personal Cyber Insurance will provide coverage for prosecution costs incurred while dealing with the aftermath of cyberstalking.

    2. 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 cybersecurity breach by malware.

    3. Cyber Extortion Coverage- A Cyber Insurance policy helps cover the costs 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.

    4. 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.

    5. 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.

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

    7. Coverage against Phishing – If any of your sensitive information like credit card details usernames & passwords are fraudulently misused, the resultant losses will be covered by cyber liability insurance.

 

Tips to Buy the Best Cyber Insurance Policy

 

Check the Coverage - Before buying a Cyber Insurance policy make sure to look closely at the coverage or the inclusion. Certain Cyber Insurance plans may treat the inclusions as 'clauses' while others may call them the 'limit of liability'. Also, some policies may not cover malware attacks, while some may offer it as an optional cover. Malware is a major threat to cybersecurity, although anti-malware software and firewalls can offer some degree of protection against it. Hence, it important to ensure that malware is covered by the Cyber Insurance policy you choose.

Ensure that Counselling Fee is covered - Dealing with cybercrimes such as cyber extortion or cyberstalking can cause immense mental stress leading the victim to seek counselling. While availing counselling can help the victim recover, it can also turn out to be an expensive affair. Therefore, ensure that your Cyber Insurance policy covers the consultation fees so that you can minimise the expenses. Bajaj Allianz Individual Cyber Safe Insurance covers the consultation fees incurred during visits to psychiatrists, psychologists or counsellors to help the insured deal with anxiety or medical conditions that are a direct result of cybercrime.

Protection against unauthorized media use - With the rise of cyberstalking and plagiarised content, it is important to have an insurance policy in place that offers coverage against the unauthorized use of your content. An ideal Cyber Insurance policy should cover the damages caused due to unauthorized broadcast or publication of your private data.

Understand the claim process - Before finalizing a cyber-insurance policy, it’s important to understand the claim process. A simple claim process will ensure timely claim settlement.

 

FAQs

 

1. What are the additional benefits of buying a cyber insurance policy?

Cyber liability insurance offers several additional benefits like counselling services from an accredited psychiatrist, psychologist or counsellor chosen by you, to take treatment for stress, anxiety or similar medical conditions caused due to cyber attacks. It also covers the expenses incurred from availing IT consultant services.

2. What are the exclusions of a cyber insurance policy?

Like any insurance policy, cyber insurance also has certain exclusion. Listed below are the major exclusions of a cyber insurance policy:-

  1. Dishonest and improper conduct

  2. Unsolicited communication

  3. Unauthorized collection of data

  4. Immoral/obscene services

  5. Bodily injury

  6. Property damage

3. How to file a cyber insurance claim?

With Finserv markets, filing a cyber insurance claim is a simple and straightforward process. If you happen to suffer any losses covered under your cyber insurance policy, you need to need to give written notice to our partner, Bajaj Allianz General Insurance within 7 days of an incident. However, ensure that you do it within 14 days of the discovery of the incident.

Now that you understand the basic details of cyber liability insurance, you will definitely agree that it is the best way to secure your finances against cyber threats. Therefore, if you want to stay financially protected against cyber threats, buying a cyber insurance policy is a must. With Bajaj Cyber Insurance Plans, you can secure a wide coverage against several cyber security threats such as email spoofing, phishing, malware, Identity theft, data breach etc. To buy or know more about Bajaj Allianz Individual Cyber Safe Insurance visit Finserv Markets.

Finserv Markets, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment, and exclusive EMI store, all under one roof- anytime, anywhere!