The importance of life and health insurance has been reiterated time and again by financial experts. Not only that, but day-to-day situations make us realise how essential it is to have an insurance cover for life and health. But apart from these forms of insurance, other forms are gaining prominence. They include motor, commercial liability and more. The latest upcoming form of insurance that is seen to make a mark is cyber security insurance. Apply for cyber security course in hyderabad to know more
What is cyber insurance?
With an increase in the digital footprint by individuals and organisations, more and more data is available on the internet. Although this data may be protected, malicious individuals snoop on this data to breach privacy and crucial information. These unwanted data breaches are called cyber-attacks, and financial as well as reputation loss from these attacks can be prevented using general insurance policies like a cyber security insurance plan.
When you buy cyber insurance plans, there are three key factors that you need to consider. Read further to know more –
#1 The coverage of your cyber insurance policy
While you search for a suitable cyber policy to protect from losses due to cyber threats, you must carefully examine the coverage of your policy. The various events that are covered under your policy terms determine the pay out in case of such an event. Inclusions or cyber insurance coverage, as some insurers may prefer to term, are labelled as ‘clauses’ or ‘limit of liability’. Some insurers extend their coverage to offer support for malware which often pose a threat to the organisation as well as individuals.
Generally, a cyber insurance policy should cover the following. So once you have shortlisted the options, make sure you check if these areas are covered –
- Reputation liability, including identity theft.
- Protection against cyberstalking and malware attacks.
- IT theft loss.
- Financial loss from phishing and email spoofing.
- Protection against cyber extortion.
- Restorations costs for any of the above losses.
#2 The sub-limits under your policy
The sub-limits under the various clauses should be considered when shortlisting a policy that fits you. For example, out of the total amount of insurance cover, the sub-limit for a particular event may be mentioned in your policy terms. It would be best if you considered these sub-limits when purchasing cyber insurance policy.
#3 Clauses for financial loss
Insurance policies have certain specified conditions under which a financial loss is covered under your policy. Generally, loss due to email spoofing and phishing falls under the policy coverage. In case of multiple events occurring at the same time, the policyholder may claim under one of the many events. It is for the policyholder to decide which event to be considered for financial loss. It is essential to note that at one point only a single claim can be filed for any of the losses. However, few insurance companies do not have a limit on the maximum times a claim can be filed during a policy tenure.
Final words
Although you might purchase a cyber insurance policy, it is necessary to take adequate precautions to avoid such events. Cyber insurance benefits not only large multinational organisations, but also individuals in protecting their information digitally. So ensure that you consider factors mentioned above to have a regulated cyber policy at the organisation and individual level. If you’re looking to avail a plan in a contactless manner, ensure that you peruse the terms and conditions of your cyber insurance or for that matter any online general insurance policy you opt for. Learn more about cyber world at cyber security course in bangalore
