Buy Cyber Risk Insurance
Starting @ just Rs110/month*- Firms related to Consulting , Telecom, Software, Banks/BFSIs, Health/Hospitals, Ecommerce, Media are prone to various Cyber Risks
- First Party Restoration Costs, Legal Expenses as well as Third Party Liability both are covered
- Malware Attacks, Identity Thefts, Cyber Intrusion, Cyber stalking, Extortion, Data Breach, Computer Forensics covered.
- Reputational Damages coverage option
- Extensive Plans from Top Insurers with Claim assistance and expert advice.
- Customized plansAffordable prices
- 24*7 SupportDedicated claims manager
- Total CareAll round wellness benefits
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What is Cyber Risk Insurance?
Cyber risk insurance, also called cyber insurance, helps businesses protect themselves from the costs of cybercrimes like cyberattacks and data breaches. It covers the damage caused by internet-related threats that affect things like computer systems, data, and company policies, which regular business insurance doesn't cover.
Just like how businesses buy insurance for physical risks like fires or natural disasters, cyber insurance covers the losses a company may face due to a cyberattack.
Importance of Cyber Risk Insurance
As cyberattacks on apps, devices, networks, and users become more common, cyber insurance has become very important for businesses. A recent study shows that the average cost of a data breach in 2024 was $4.88 million, which is 10% higher than last year.
A data breach or cyber attack can cause big problems, like losing money, damaging your reputation, and losing customers' trust. Businesses can also face legal issues if customer data is stolen. Cyber insurance helps protect against these risks, including things like cyber terrorism. It also helps businesses deal with the damage after a security breach.
For example, in 2011, a major cyberattack exposed millions of people's personal data and caused a service disruption for weeks. The total loss was over $171 million, but this could have been much lower with good cyber insurance.
Cyber insurance is not just a backup plan; it's a smart way to keep your business safe and strong against digital threats.
How Cyber Risk Insurance Works
Cyber risk insurance works like other types of insurance. Many companies that sell business insurance, like property or liability insurance, also offer cyber insurance.
Cyber insurance usually has two types of coverage:
- First-party coverage Covers losses that directly affect the business itself.
- Third-party coverage Covers losses that affect other businesses due to their relationship with the affected company.
Common Types of Cybersecurity Attacks
Here is the list of the common types of cyber security attacks:
- 01
Brute Force Attacks
Attackers try to guess passwords by testing many different combinations until they find the right one.
- 02
Whale Phishing Attacks
These attacks target important people, like company executives, to steal sensitive information.
- 03
Session Hijacking
This attack takes over a user's session to access systems without permission.
- 04
Ransomware
Malicious software locks or encrypts your files and demands money to release them.
- 05
DNS Spoofing
Redirects traffic from a trusted website to a harmful one without the user knowing.
- 06
Insider Threats
Employees or trusted people inside a company can cause harm or steal information.
- 07
XSS Attacks
Malicious scripts are added to web pages, which can steal data or harm users.
- 08
Password Attacks
These attacks try to steal or guess passwords to get unauthorized access to systems.
- 09
MITM Attacks
In these attacks, someone secretly listens in or changes the communication between two people or systems.
- 10
Drive-by Attacks
Malware is accidentally downloaded from compromised websites just by visiting them.
- 11
Trojan Horses
These are harmful programs disguised as harmless ones, allowing attackers to access systems.
- 12
Phishing Attacks
Fake emails or websites try to trick people into giving up personal information like passwords or credit card numbers.
- 13
DoS & DDoS Attacks
These attacks flood a server or network with too much traffic, making it hard for real users to access it.
- 14
Spear-phishing Attacks
This is a type of phishing that targets a specific person or company.
- 15
SQL Injection Attacks
Malicious code is inserted into a database query to gain or change information.
- 16
URL Interpretation
Attackers change a web address (URL) to access sensitive or unauthorized data.
- 17
Malware Attacks
Harmful software designed to damage or steal information from your systems.
- 18
Eavesdropping Attacks
Attackers secretly listen to private communications or data without permission.
- 19
Birthday Attack
This attack tries to trick systems by exploiting weaknesses in security methods, using math.
- 20
Web Attacks
These exploit weaknesses in websites to access or change data without permission.
Who Should Buy Cyber Risk Insurance?
In today's digital world, cyber insurance is important for all types of businesses. Whether you have a small company or a large one, it helps protect your operations and keeps your business moving forward.
If you use the internet, manage sensitive data, or rely on digital systems, you need cyber insurance. Banks, tech companies, healthcare providers, and financial institutions are big targets for cybercriminals. But schools, small businesses, startups, and local companies are also at risk.
Risks of Not Having Cyber Risk Insurance
Not having cyber insurance can lead to serious problems for businesses, such as:
- 1 Loss of Income: Cyber attacks can cause business downtime, which may lead to a loss of money.
- 2 Ransom Payments: Businesses might need to pay a ransom or cover the cost of recovering lost data.
- 3 Expensive Recovery: After an incident, businesses often need to pay a lot for experts to help recover data and systems.
- 4 Damage to Reputation: A cyber attack can harm customer trust and hurt the business's reputation.
- 5 Disruption of Work: Cyber incidents can cause long periods of downtime, which may affect relationships with customers and partners.
- 6 Data Breach Costs: Companies may have to pay for things like legal fees, notifying customers, and fines if there is a data breach.
- 7 Loss of Important Data: A cyber attack could result in the loss of valuable information.
Inclusions and Exclusion Under Cyber Risk Insurance?
Inclusion
- Helps pay if hackers demand ransom in a cyberattack.
- Covers your expenses if someone sues you for a data breach or not protecting private info.
- If a cyberattack stops your business operations, it covers the money you lose.
- Pays for notifying your customers and offering credit monitoring if their data is exposed.
- Covers legal costs if someone blames your business for hurting their reputation online.
- Covers money lost if your business is tricked into making payments through fake communications.
- Helps pay fines if your company breaks data protection rules.
- Covers losses caused by cyber attacks linked to terrorism.
- Pays for PR help to protect your brand after a cyber incident.
- Helps if you are accused of copying content or designs without permission.
- Covers claims if your weak cyber security causes harm to others.
- Covers legal trouble caused by things like videos, blogs, or social media posts.
- Pays for forensic experts to find out what went wrong during a cyberattack.
- Covers rewards given to people who help catch the cybercriminals.
Exclusions
- Loss or damage of any physical property.
- Injuries, illness, death, or damage to real, physical items.
- Loss or theft of cryptocurrency like Bitcoin.
- Losses caused by power cuts, machine breakdowns, or equipment failure.
- Legal cases that started before you bought the insurance.
- Losses caused by illegal or dishonest actions.
- Problems related to trademarks, patents, or copying ideas.
- Losses due to buying or trading bonds, shares, currencies, or goods.
- Anything that the law says cannot be insured.
- Ignoring clear signs or warnings that something might go wrong.
- Losses that affect other people or companies (indirect losses).
- Unclear or unexplained losses, or those caused by government actions.
- Breaking laws or rules on purpose.
- Not protecting important information like card or bank details.
The Role of Cyber Insurance in Cyber Defense
Cyber insurance is not something that stops cyber attacks. It's more like a safety net - it helps you deal with the damage after something bad happens, but it doesn't stop the problem from happening in the first place.
That's why having strong cybersecurity is still very important. Cyber insurance is there to support you after an attack, not instead of your security measures.
Before giving you a policy, insurance companies will check how strong your cyber protection is. So, building a strong defense is a must. While insurance helps cover losses, it's your security that protects you the most.
How to Pick the Right Cyber Insurance Policy
Choosing the right cyber insurance means knowing what risks your business faces and finding a policy that fits those needs.
Start by learning how the cost is decided - it usually depends on your type of business, how much money you make, and how strong your cyber security is. Insurance companies might ask for a check-up of your security, so be ready to share related documents.
Read each policy carefully and compare different companies. Make sure the policy covers both today's and future cyber threats. The best policy should work well with your current security and give full protection.
How to Lower Cyber Risk with Insurance
Cyber risk is a big worry for all kinds of companies. To stay safe, companies should use cyber insurance, strong technology, and expert help together.
- 1
Step 1 — Assess:
The company should start by checking how safe it is from cyber threats. They can do this with help from a trusted expert who will review their security.
- 2
Step 2 — Secure:
Next, the company needs to set up strong protections, like using software to stop viruses and other harmful attacks.
- 3
Step 3 — Insure:
Once the company has checked and secured its systems, it can apply for cyber insurance to protect against future risks.
FAQs
Cyber risks are dangers that happen when you use computers or the internet. These include things like hackers trying to steal information or viruses that can damage your data.
Cyber insurance is a special kind of insurance that helps businesses pay for losses if they get hacked or have a data breach. It helps cover costs like fixing damage and lost money.
Cybersecurity means keeping computers, networks, and data safe from attacks or damage. It includes tools and steps to stop hackers and protect information.
There are two main types of cyber risks: one from inside the company (like mistakes or bad employees) and one from outside (like hackers or viruses).
The four common online risks are viruses that harm devices, phishing scams that steal information, data theft where private info is taken, and hacking where someone breaks into systems.
The biggest cyber risk is a data breach, which means private or important information is stolen or shown to people who shouldn't see it.
Some types of cybersecurity are protecting networks, apps, computers (endpoints), and data itself. Each helps keep different parts safe from cyber attacks.
Anyone who uses computers or the internet needs cybersecurity. This helps protect personal info and stops bad things from happening online.
Businesses, schools, governments, and even regular people all use cybersecurity to keep their information and devices safe from attacks.
Yes, cyber insurance is helpful for businesses because it can pay for costs if they get hacked or lose important data. It helps them recover faster.
Yes, cyber insurance pays money if the business makes a valid claim after a cyber attack or data loss. This helps cover damages and costs.
Cyber insurance costs more because cyber attacks happen often and can cause big problems. The insurance company takes a higher risk, so the price goes up.
Yes, some companies sell cyber insurance to people too. It helps protect their personal information from online threats.
Sometimes cyber insurance will help pay ransom if your company's data is held by hackers. But it depends on what your insurance policy says.