WHAT IS A CYBER INSURANCE POLICY?
Let’s start with the introduction of a Cyber Insurance policy.
In Today’s interconnected world, it is crucial for Organizations to have adequate security and data protection measures, over and above needs a top-up of Cyber Insurance Policy.
Organizations are slowly understanding the importance of cyber liability insurance programs post rise in incidents of security breach and soon it will be a necessity, though many companies are offering cyber liability cover, conflict of laws in cyberspace is a major hurdle before insurance companies providing cyber liability insurance in India.
Cyber Insurance Policy cover provides cover for damages and defense costs resulting from denial of service ,virus attacks , physical theft , wrongful misappropriation regarding third party data and very leak of such data by the employee ,also coverage can be extended for stolen confidential personal information etc. .
In fact, marketing done through social media channels and corporate blogs are covered, even if done by employees without their employer’s knowledge or sign off.
The policy also covers the cost of Printed brochures, print and television advertising and radio content along with online media.
In this policy there are three parties namely, First party who has insured itself, second party the insurer who bears the risk and the third party who has suffered financial loss due to first party and also provides coverage for first party losses.
At times organizations feel that they have a robust IT department and security systems like firewalls etc. but that is not enough, many data breaches occur because of an employee error and or an ‘inside job’ from rogue employees.
From Employees opening distrustful emails to passwords appended on computer screens in plain sight and downloading malware to laptops and smartphones. In fact, dumped information like outdated customer information, old credit/debit cards receipts and other files are vulnerable if hackers logged into your network.
Cyber Liability insurance is a fairly new concept in India.
however, as more and more organizations are looking forward to this coverage the prices have become fairly competitive.
It is always advisable to have this policy, as in absence of this policy liability of first-party losses to Insured.
This includes notification to customers, providing annual credit monitoring, lawyer expenses including the hiring of forensic IT experts.