What Does Cyber Insurance Cover?
Mini Balakrishnan
Cyber insurance is a type of insurance that provides protection against losses or damages caused by cyber-attacks or data breaches. It is designed to help businesses and individuals mitigate the financial impact of cyber incidents, which can include data theft, ransomware attacks, business interruption, and liability claims.
In India, cyber insurance policies typically cover the following aspects:
- Data Breaches: Cyber insurance policies provide coverage for the cost of investigating and mitigating a data breach, including the cost of hiring forensic experts, notifying customers and stakeholders, and providing credit monitoring services.
- Business Interruption: Cyber insurance policies provide coverage for the financial losses that occur due to business interruption caused by a cyber attack. This can include the loss of revenue, extra expenses, and other related costs.
- Cyber Extortion: Cyber insurance policies provide coverage for the cost of responding to a cyber extortion threat, including the cost of negotiating and paying the ransom.
- Legal Liability: Cyber insurance policies provide coverage for the legal liabilities that arise from a cyber incident, including claims for breach of privacy, copyright infringement, and defamation.
- Regulatory Fines and Penalties: Cyber insurance policies provide coverage for the fines and penalties that may be levied by regulators due to a cyber incident.
- Reputational Damage: Cyber insurance policies provide coverage for the cost of reputational damage that occurs due to a cyber incident, including the cost of public relations campaigns and other remedial measures.
