As technology evolves, so does the way we use it to streamline and enhance our operations and processes. But this reliance on technology also makes companies more vulnerable to cyber threats. Cyber attacks which were unheard of a few years back are on a rise now and this is deemed to be an emerging risk for any organization who relies on technology for their business operations.
A Cyber crime involves using malicious code and software to alter computer code, logic or data, resulting in disruptive consequences.
Traditional insurance policies may not have been designed to cover these new and evolving risks, which is why Cyber Crime Insurance policies are becoming more and more important to businesses. Although it is integral for every business to have a robust IT Security Policy in place, Cyber Insurance policy acts as a fall-back option in case the organization’s IT security measures are breached by cyber attackers or hackers and provides the much needed financial protection in such situations.
WHO SHOULD BUY
Any business which relies on technology for their day- to-day operations like email correspondence, financial transactions, networking or exchanging information via the internet is at the risk of getting attacked by cyber hackers. The policy also covers virus attacks, privacy breaches and theft of data which are quite eminent risks for most organizations.
Businesses dealing with data belonging to a third party / clients are at a much higher risk of cyber attack and it will be a good risk management practice for such organizations to have a Cyber Insurance policy in place.
TYPICAL LOSSES
• Loss of sensitive Personal and Corporate information caused by theft or altering of data
• Virus or malware, denial of service & other losses of data from Insured’s computer systems or from Insured’s service providers (E.g.- From the Cloud or Internet Service Provider)
• Reputational loss of the business as well as of the senior executives
• Opening of a malicious email by an unknowing employee causing virus attack/loss of data
• Disgruntled employee stealing the company data and either selling it for money or posting sensitive personnel data online
• A hacker accesses a network and installs ransomware
POLICY FEATURES/ EXTENSIONS
• Direct costs to the Insured
• Claims from third parties for loss/breach of their data handled by the Insured
• Expenses associated with defending Cyber claims, such as legal costs
• Expenses incurred towards Public relations consultancy services towards reputational damage
• Defence costs incurred to defend a suit involving breach of copyright, plagiarism, defamation, libel or slander on Insured’s website or product brochures
• Network Interruption Liability
• Rectification costs towards lost, damaged, or destroyed IT systems/records/data
• Extortion payments, Crisis Management Costs
• Fines & penalties incurred due to privacy breach
• Credit Monitoring costs
• Data restoration / Forensic costs
KEY EXCLUSIONS
• War/Terrorism
• Bodily Injury / Property Damage
• Fraudulent / Criminal acts or wilful violation of any law
• Anti-trust / Conduct
• Contractual Liability
• Patents & Trade Secrets
• Securities Claims
• Trading losses / unauthorised trading
• Unlawfully collected data / Unsolicited materials
