Today, a Cyber Risk Insurance Policy is becoming one of the most important policies for businesses. As more and more businesses are moving from physical mode to online, the importance of a Cyber Risk Insurance Policy is also increasing manifold to secure the business from various risks.
What is a Cyber Risk Insurance Policy?
A Cyber Risk Insurance Policy protects the Insured Company from the risk of data breach. A Cyber Risk Insurance Policy pays for the cost of recovering from the Data Breach Incident or any other form of Cyberattack faced by the Insured Company.
Additionally, a Cyber Risk Insurance Policy also provides coverage for legal liability from parties which have been affected by the Breach such as customers, vendors and partners.
Cyber Risk Insurance Policy (What Does It Cover?)
Most Cyber Risk Insurance Policies include the following coverages:
Network Security and Privacy Liability Coverage
Network Security Coverage in a Cyber Risk Liability Insurance covers the Insured Party in the event of Network Security Failure due to Malware, Data Breach, Ransomware etc.
A Cyber Risk Insurance Policy will pay First-Party Costs (Costs directly incurred by the insured as a result of the Cyberattack) arising out of a Network Security Failure such as Forensic Costs, Credit Monitoring Costs, Public Relations Expenses, Notification Costs etc.
Privacy Liability Cover is an important part of Cyber Insurance Policy Coverage. Privacy Liability Coverage in a Cyber Risk Liability Insurance covers the Insured Party from a liability arising out of a Cyber Attack which results in breach of customer’s or employee’s data.
A Cyber Risk Insurance Policy will cover Third-Party Liability arising out of Breach of Privacy on account of a Cyberattack. Third Party Liability Coverage would include cover for Legal Expenses and Compensatory Damages om the event of a Data Breach Incident.
Some Cyber Insurance Companies also provide coverage for Regulatory Fines and Penalties.
Cyber Extortion Coverage
Cyber Risk Policy Coverage also includes cover for Cyber Extortion (Ransomware). Basically, this provides coverage for claims and costs arising out of ransomware attacks which paralyse a company’s operations. Companies need to pay ransom to Cyber Criminals to restore their networks in such a case.
Multimedia Liability Cover in a Cyber Risk Insurance Policy provides cover for intellectual property infringement (except patent infringement) arising out of the multimedia activities of the Insured.
Nowadays, most businesses won’t be able to continue operations in case of a Network Security Failure. Consequently, businesses suffer heavy loss of revenues and profits in case of a Cyberattack. A Cyber Risk Insurance Policy will provide cover for Loss of Gross Profits in event of a Cyber Attack.
Cyber Risk Insurance Companies (Best Options)
- HDFC Ergo General Insurance Company
- SBI General Insurance Company
- TATA AIG General Insurance Company
- Bajaj Allianz General Insurance Company
- ICICI Lombard General Insurance Company
- Iffco Tokyo General Insurance Company
Cyber Insurance Risk Assessment (How Does It Work?)
Conducting a Cyber Security Risk Assessment would enable an organisation to understand the magnitude of risk and take measures to manage and mitigate the Cyber Risk.
Additionally, taking proactive measures to mitigate Cyber Risks could protect an organisation from huge losses in the event of a Data Breach Incident. Additionally, huge expenses in terms of regulatory and compliance costs following a Cyberattack would also be avoided.
A Cyber Insurance Risk Assessment would primarily look at identifying the Cyber Threats to which an organisation is vulnerable.
Conducting a Cyber Insurance Risk Assessment involves the following steps:
- Identify the Assets which are vulnerable to Cyberattacks
- Identify the Cyber Threats
- Analyse the likelihood of the Cyber Threat and Losses and the impact in case of a Cyber Attack
- Take Steps to avoid, transfer or mitigate the Cyber Risk
- Document all the Cyber Risk Scenarios and measures to be taken in case of a Cyberattack
Cyber Risk Liability Insurance (Getting Started)
Cyber Risk Insurance Policy is a must-have insurance policy for all businesses today to secure itself. Cyber Risk Policy Coverage varies from one Cyber Insurance Provider to another and it is important to compare and thoroughly read and compare Cyber Insurance Policy Wordings between multiple insurance providers. It is also extremely important to read through the Exclusions in a Cyber Insurance Policy so that you are aware of what is not covered under a Cyber Risk Insurance Policy.
Businesses wishing to purchase a Cyber Risk Insurance Policy should take the assistance of an experienced Cyber Liability Insurance Broker who will assist them with availing comprehensive Cyber Risk Policy Coverage. Qian is a licensed Cyber Liability Insurance Broker with experience of serving multiple clients across diverse industries for their Cyber Risk Insurance Policy requirements. Our experienced team will assist you in availing comprehensive Cyber Insurance Policy Coverage. Additionally, we can negotiate competitive Cyber Insurance Premiums for your Cyber Insurance Policy so that the Cyber Insurance Policy Cost is reasonable.
If you wish to purchase a Cyber Risk Insurance Policy, email us at email@example.com or call us on 022-22044986. We would be glad to assist you
- What is a Cyber Insurance Policy?
- What is Cyber Threat or Cyber Risk?
- On Security Insurance Necessity For Businesses
- What does a Cyber Insurance Policy Cover?
- What kind of losses does a Company suffer on account of Cyberattacks and Security Breaches?
- What is the average Cost of a Cyber Incident?
- What are the First Party Liability Coverages under a Cyber Liability Policy?
- What are the Expenses Covered under a Cyber Liability Policy?
- What are the Third Party Liability Coverages covered under a Cyber Liability Insurance Policy?
- Cyber Security Insurance Policy (Why Does It Matter?)
- What are the Exclusions under a Cyber Liability Insurance?
- Cyber Insurance Policy Cost (What is reasonable?)
- Get Best Quotes for Cyber Insurance Policy with Qian