Cyber Liability Insurance Coverage

What Does Cyber Liability Insurance Cover?

25 May 2019
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The word cyber-attack makes you think of The term 'cyber-attack' makes you think of data breaches at a retailer or some big organizations, but did you know that you could personally bear the brunt of a cyber attack too? From a surprise virus to a deliberate rental scam, to deeply hurtful cyber-bullying, the threats you and your family face in the connected world are real and not to be ignored. If electronic data stored on your firm's computer system is lost, stolen, or compromised, the cost of restoring it can be significant. However, you can protect yourself from such data breaches with Bajaj Allianz Individual Cyber Insurance from Finserv MARKETS.

A data breach can damage more than just your computer system, it also can damage your reputation and put you and your family at risk. That's why cyber insurance can be a smart precaution to avoid such threats.

Why Cyber Liability Insurance?

A cyber-attack is likely what you first thought of as being protected by Individual Cyber Insurance. If a computing device (desktop, laptop, tablet, etc.) or connected home device (smartphone, thermostat, security system) owned/leased and operated by your or your family is attacked by a virus, this portion of the policy will help you recover. The ways that we are connected to the internet are rapidly increasing, and all of them provide opportunities for a cyber-attack to hit your home.

Individual Cyber Insurance policies were written with the expansion of the internet of things in mind, and coverage extends to most items on your home network that are owned or leased and operated by you or a member of your family. Such attacks can happen to anyone, so buying a cyber insurance is a smart option. First-party coverages apply to losses sustained by you directly. An example is the damages caused to your electronic data files by a hacker. Third-party coverages apply to claims against your firm by people who have been injured as a result of your actions or failure to act.

If a cyber-attack results in people being unable to access their home or needing to replace an electronic device, the coverage will ensure they're reimbursed for the costs associated with coping up with the unfortunate event.

What Is Cyber Liability Coverage?

As technology has become increasingly integrated into people's lives, the risks that sensitive personal data could be compromised, including social security numbers and bank and credit card information, have continued to rise. The term "Cyber Liability Insurance Policy" is often used to describe a range of covers in very much the same way the word cyber is used to describe a broad range of information security related tools, processes, and services.

Cyber Insurance Premiums can be a smart precaution to protect yourself financially against risks and cover financial losses that result in data breaches and other cyber events.

What does Cyber Insurance Cover?

A Bajaj Cyber Insurance or Digital Insurance Plan available on Finserv MARKETS cover can include

  • Data breach/privacy crisis management cover. For example, expenses related to the management of an incident, the investigation, the remediation, data subject notification, call management, credit checking for data subjects, legal costs, court attendance, and regulatory fines.
  • Multimedia/Media liability cover. Third-party damages covered can include specific defacement of website and intellectual property rights infringement.
  • Extortion liability cover. Typically, losses due to a threat of extortion, professional fees related to dealing with the extortion.
  • Network security liability. Third-party damages as a result of a denial of access costs related to data on third-party suppliers and costs related to the theft of data on third-party systems.

Here's an overview of what each type of coverage offers.

First Party Coverages

First-party cyber liability insurance provides financial assistance to reduce the impact of data breaches and cyber-attacks. It may cover the following:

  • Communicating with affected customers
  • Providing credit monitoring
  • Executing PR and reputation management campaigns
  • Other recovery activities
  • Someone maliciously destroys your data.
  • A hacker launches a denial of service (DoS) attacks against you.
  • Someone plants a virus, malware, or spyware on your computer hard drive.
  • A natural disaster destroys your computer hardware.
  • Someone holds your computer data for ransom.

Third-Party Liability Coverages

Third-party Cyber Risk Insurance covers the people and businesses "responsible" for the systems that allowed a data breach to occur. Providing liability protection in case the insured company makes a mistake that results in a client or entity suffering a data breach or cyber-attack. These coverages apply to damages or settlements that result from covered claims. They also cover the cost of defending you against such claims. Note that defense costs may reduce the limit of insurance.

Third-party Cyber Risk Insurance covers legal expenses that result from a firm being blamed for causing another firm’s cyber losses. It may cover the following:

  • Judgments, civil awards, or settlements you're legally obligated to pay after a data breach.
  • Electronic media liability, including infringement of copyright, domain name, trade name, service mark, or slogan on an intranet or Internet site.
  • Potential coverage for employee privacy liability as well as network security and privacy liability.

Other Coverages

Bajaj Allianz Individual Cyber Insurance policy available on Finserv MARKETS includes various crime coverages such as computer fraud, funds transfer fraud, and cyber terrorism (acts of violence committed for political purposes). At least with detailed policies, you should know where you stand.

How to prevent cyber-attacks?

In addition to offering Individual Cyber Coverage, it is highly recommended that you take the necessary precautions. Today, hacking is a full-time job and an organized crime in the cyber world. Cybercrime is not something that can be prevented but with the advent of the Bajaj Allianz Cyber Insurance Policy, it acts as a helping hand to people in need by giving them the best line of defense if their information is compromised.

Here are some precautions to follow to avoid cyber threats:

  • Lock down your login details online, especially for social media networks and email, by using two-step authentication.
  • Regularly change your passwords (every 2-3 months) and use a password manager to securely save this information. A strong password is at least 12 characters long.
  • Never save credit card information online.
  • Use safe payment options when making purchases online. Credit cards are generally the safest option because they allow buyers to seek a credit from the issuer if the product isn’t delivered or isn’t what was ordered.
  • Upgrade your computer and devices with the latest updates and operating systems.
  • Backup your digital information, such as photos, music, financial and health records, and personal contacts, by making copies of your data.

A cyber liability insurance can safeguard your critical data from a potential cyber-attacks and internet based risks. Hence, knowing all the benefits of a cyber insurance and how to buy that policy can help you make a sound buying decision. So why wait? Get a free cyber liability insurance quote at Finserv MARKETS and secure your data.