In a digital world where cyber security and data privacy are of utmost importance, it’s essential that vendors understand the risks associated with their business operations. To protect themselves from potential losses, vendors should consider cyber insurance.
What is cyber insurance?
Cyber insurance is a type of insurance that helps protect businesses from losses caused by cyber-attacks. This type of insurance can help cover the costs of recovering from a data breach, as well as any legal fees associated with defending against a lawsuit. Cyber insurance can also help cover the costs of business interruption, which can occur if a company's website is hacked and taken offline.
Cyber insurance policies
As a vendor, you likely know that you need to be insured against potential liability. But what about cyber insurance? In the event of a data breach or other cyber incident, your regular insurance policy may not provide adequate coverage. That's where cyber insurance comes in.
Cyber insurance policies can vary widely in terms of coverage, but most will provide some financial protection in the event of a data breach or other cyber incident. Some policies will also cover things like business interruption, reputational damage, and third-party claims.
When shopping for cyber insurance, be sure to work with an experienced broker who can help you understand your risks and find a policy that meets your needs.
Types of Cyber Insurance
Following are the 10 major types of cyber attacks -
- Malware Attack
- Ransomware
- Cyber Extortion
- Identity Theft
- Denial-of-Service
- Privacy Data Breach
- Password Attack
- SQL injection Attack
- DNS Spoofing
- Insider Threat
Why cyber insurance is a must have for businesses
In the wake of high-profile data breaches like those suffered by Target and Equifax, it's become clear that businesses need to do more to protect themselves from cyber attacks. One way to do this is to purchase cyber insurance.
Cyber insurance is a type of insurance that covers losses resulting from data breaches and other cyber-related incidents. It can help cover the costs of things like investigating and repairing the damage caused by a breach, as well as providing compensation for any customers who may have been affected.
While no business is completely immune to the risk of a cyber attack, having insurance can help minimize the financial impact of one. For this reason, it's becoming increasingly common for businesses to require their vendors to carry cyber insurance.
If you're doing business with any company that holds sensitive customer data, it's important to make sure they have adequate protection in place. Cyber insurance is one way to help ensure that your business is protected in the event of a breach.
Cyber insurance limits and exclusions
There are a few key things to keep in mind when it comes to cyber insurance limits and exclusions for vendors. First, it's important to understand that cyber insurance is designed to protect businesses from the financial losses that can result from a data breach or other type of cyber attack. However, it's important to note that cyber insurance does not cover all potential losses that could occur as a result of a cyber attack.
Cyber insurance policies typically have limits on the amount of coverage they provide. This means that if the total cost of a data breach exceeds the limit on your policy, you will be responsible for paying the difference out of pocket. It's important to know what the limit is on your policy so that you can make sure you have adequate coverage.
In addition to limits, most cyber insurance policies also have exclusions. These are types of losses that are not covered by the policy. Common exclusions include damage caused by intentional acts, loss of revenue, and costs associated with recovery from a data breach (such as hiring a forensic investigator). Be sure to read your policy carefully so that you understand what is and is not covered.
If you're considering purchasing cyber insurance for your business, be sure to work with an experienced broker who can help you understand the limits and exclusions of various policies so that you can find the right coverage for your needs.
How much does cyber insurance cost?
Cyber insurance costs can vary depending on the size and type of business, as well as the specific coverage needs of the organization. However, some tips to keep in mind when budgeting for cyber insurance include:
- Coverage limits should be based on the total value of your digital assets, including data, applications, and systems.
- Insurance premiums will typically be a percentage of the coverage limit, so it's important to have a clear idea of what needs to be covered.
- Some insurers may offer discounts for businesses that have implemented data security measures such as encryption or multi-factor authentication.
For a 3 crore cyber insurance cover, you have to pay Rs 2 lakh as annual premium. And for a Rs 5 crore cyber insurance cover, you need to pay Rs 2.5 lakh
