Cyber Insurance

The cyber-attacks can have a devastating impact on the company finances inducing substantial losses and operational blockers. Without a good cyber insurance policy coverage, many companies will have an extensive struggle to fight against the threats and compensate for the financial and reputational damage.

The key sectors which are highly prone to cyber-attacks are:

• Information and Technology

• BFSI & Fintech

• Healthcare

• Manufacturing

• Finance

• Energy

• Consumer Services

• Government

• Retail and E-commerce

With comprehensive cybersecurity measures, which primarily include cyber insurance, companies can safeguard their businesses easily. This ensures financial protection against the impact of cyber-attacks, releasing their bandwidth to focus on product innovation and business growth without any worries about potential cyber incidents.

The average cost of data breach in India was estimated to ₹17.9 crore in 2023. Further, around 20% of internet users in India are highly vulnerable to cyber threats in 2024 (according to Trend Micro’s cybersecurity report). India ranked as the third most targeted country for cyberattacks in 2023, experiencing approximately 79 million phishing attacks, with the technology sector facing nearly 33% of these threats. (according to a report by Cybersecurity Ventures).

With the digitalization of businesses and rising integration of AI and technology, there is much higher dependence on the Internet for business operations and growth. This makes businesses highly vulnerable to cyber risks and data breaches, causing a devastating impact on the company’s finances and adversely impacting the relationships with clients /customers.

This highlights the rising importance of having strong security measures like having a robust cyber insurance policy which provides coverage for data restoration, updating the clients/customers about the data breaches, losses due to cybercrime, defense and settlement costs which acts as a shield to protect the businesses.

Cyber insurance policy coverage provides an array of extensive services to normalize the disruption caused by cybercriminals and resume business operations at the earliest. The cyber insurance covers for the following aspects:

• Malware Attack: When a malware attack harms the computer’s business systems, the cyber insurance coverage provides resources for recovery of the affected systems and defense costs for any legal claims.

• Phishing: Cover for any financial losses incurred due to unauthorized access to any confidential records and financial frauds induced by it.

• Identity Theft: The cyber security insurance policy offers protection against any incidental identity theft and supports the expenses for any legal proceedings and any potential settlements after the verdict.

• Data Breach or Privacy: Cover for legal costs when the business is impacted by a data breach or invasion of data privacy.

• Reputational Damage: Comprehensive coverage for any financial losses due to reputational damage led by a specific cyber incident, which also extends to the loss in profits and expenses for public relations campaigns and crisis management activities varying according to the policy premium.

• Cyber Extortion: Cover for any ransomware attacks when cybercriminals demand payment to return access to data or systems. The cyber insurance policy coverage could provide financial compensation for ransom payments, support negotiation with cyber criminals and facilitate a quicker recovery.

• Computer Forensics: Financial support for any expenses involved in the investigation of a cyberattack, including employing a forensic expert to assess the affected systems, retrieve the data, and detect any potential gaps. Insurers help the insured get clarity on the data breach and enforce security measures to prevent future attacks.

• Extended Reporting Period: The cyber crime insurance coverage offers an extended period for businesses to report any incidents or attacks that occurred after the policy expired with an additional premium. This ensures auxiliary protection for any claims arising from past incidents and continuity of coverage.

• Any claims from pre-existing data privacy breaches or other cyber incidents like IT theft loss, cyber extortion, cyberstalking, malware damage, etc. before the purchase of the policy is not included in the cyber insurance policy coverage.

• The overall expenditure to enhance the technology systems and strengthen the current safety systems of the businesses.

• When any employee or insider has initiated the cyberattack, the insured will not get the benefit of coverage from the insurer.

• Cyber insurance excludes any claims about a physical injury, sickness, disability, or death. However, the exception is any case of proven mental anguish due to the cyber attack may be covered.

• When the insured or partners are intentionally non-compliant or have caused breaches or fraudulent activities, the cyber crime insurance does not cover it.

• The claims due to warlike situations like an invasion, activities of foreign enemies, rebellion or revolutionary acts, or government actions are excluded from the coverage.

The cyber insurance policy premium cost for businesses can be influenced by a number of factors. This includes the nature of the business, the coverage desired with any additional sub-limits, the size of the organization, the risk potential, current cybersecurity measures, previous record of claims and history of cyberattacks. Generally, the annual cyber insurance policy premium for businesses begins from a few lakhs and can vary according to desired coverage limit and other factors.

With a customer-centric approach, Covrzy works to simplify business insurance and curate customized policies that align with the unique requirements of your business. Covrzy offers a streamlined claims process and guides you at every step from tailoring the policy coverage as per business requirements, initiating the claims process, documentation process, and receiving the policy benefits.

Covrzy’s Cyber Crime Insurance policy provides with:

• Comprehensive coverage with flexible options.

• Affordable policy premium with a competitive market price aligning with budget.

• Expert guidance at every step of the claims process.

• Fast settlement of claims to support quick recovery of damages or loss.