The world is coming closer even after expanding geographically. Everyone has the feeling of staying connected although residing or working from continents apart. Multinational companies work in collaborative effort driving business goals. All of it is possible because of the internet.
As the internet facilitates convenience, there is also an increased risk. Being a virtual medium, there are cases of cyber theft and cybercrimes. Hackers carry out these illicit activities to acquire confidential data, which can end up causing significant financial losses.
With these kinds of risk arising each passing day, insurance companies have come up with a special type of general insurancecover known as a cyber insurance policy. It is a relatively new concept but has gained prime importance in the modern-day and age. Also, the handful of insurance companies that offer cyber insurance in India are increasing their coverage as new and new threats start to surface.
Let us look at a few points that you must keep in mind while purchasing a cyber insurance policy –
The most crucial aspect when buying a cyber insurance plan is assessing the existing risk. Identifying the risks that you or your business shall face is the first step. It will help in determining the coverage for your cyber insurance policy. For example, do you have any crucial information stored on the cloud? Is there a payment detail or other important credential information stored on the cloud? Are there just reports that are virtually stored over the internet? These are a few questions the answers to which will help in determining the risk of the data stored over the cloud.
Check the Policy Terms
After assessing your security requirement, you should make sure to read the policy document. For instance, which event is defined as a ‘threat’ or a ‘cyber attack’ is defined under the policy terms. Having a thorough understanding of the ‘fine print’ will help the insured be aware of the events when a claim can be filed.
Understand what it Offers
No cyber insurance coveragewill be useful if you do not assess what it has on offer. While buying cyber insurance, one must carefully understand what kind of situations are covered by the insurer. Moreover, cases of phishing or email spoofing are on the rise, and one must avail a policy, which includes them. Some plans extend the policy coverage to include cyber extortion too.
Get familiar with Policy Offerings
One might be surprised to know what is offered by your insurer in case you face a cyber attack. This makes a comparison of the various available plans more essential. Some insurance policies have a panel of cyber professionals like attorneys and forensic consultants that offer expert advice on tackling these issues. Also, they can help your business install cybersecurity solutions to prevent these threats. Ensure that you thoroughly examine and avail such cyber insurance benefits.
Know your responsibility
Lastly, you must know what you are responsible for. For example, reporting to the insurance company and filing cyber insurance claims during data breaches is your responsibility. While purchasing a cyber insurance policy, you get familiar with what needs to be done at your end before filing a claim.
To conclude, take note of the above points that will help you in making your purchase decision for a cyber insurance plan. Make sure you take requisite precautions before finalising a suitable policy for you and your business.