Everything You Need to Know About Cyber Insurance

Do you ever think how vulnerable you are when doing any kind of financial transaction online like an ecommerce purchase? You may have installed safety measures on your devices, but a small loophole or an unforced error may be enough to make you vulnerable against financial loss.

Cyber attacks can affect both individuals and corporations alike. Even various banks have reported mobile phishing attempts by duplication of their phone banking applications. In 2016, card data of almost 3.2 million subscribers was stolen from a bank's network bypassing its security protocols.

Understanding Cyber insurance
India is today the second largest internet market in terms of user base but cyber insurance however accounts for less than 1 % of the global market. Cyber insurance offers protection to both individuals and corporations by mitigating risk exposure and offset any recover related costs.

Typically a cyber insurance plans offers coverage for investigation of the cyber crime activity, cater to any financial and business losses, offer protection against privacy and data loss as well as against any lawsuits and extortions arising out of the breach.

Cyber Insurance and its influence from corporations to Individuals
Cyber insurance which has been quite popular in the developed markets is slowly making its presence felt in India. In 2017 alone the number of corporations opting for cyber insurance has registered a 50% increase over the same period last year. Many general insurers including the likes of ICICI Lombard, HDFC Ergo, Bajaj Allianz, and Tata AIG have been prominent in offering cyber insurance for corporations.

Cyber insurance for enterprises
Here is a snapshot of various cyber insurance plans available for corporations and business enterprises.

	Benefits	Coverage	Exclusions
Cyber Security by HDFC ERGO	Combined benefit of cyber liability and cyber crime expense coverage. Privacy notification expenses coverage. Covers Cyber hacking and cyber attack incidents.	E-Theft Loss for funds or property due to fraudulent input of data E-communication Loss occurring due to a customer having transferred funds or property. E-Threat Loss, including the cost of a professional negotiator and any payment made	Fraudulent act or willful violation. Bodily injury, sickness, disease, death of any person or damage to any tangible property Mechanical failure.
TATA AIG Cyber Risk Protector	On payment of additional premium , the Insurer will pay to or on behalf of the Insured all Extortion Loss	Loss of Personal Information, Loss of Corporate Information, Data Administrative Investigation, Data Administrative Fines, Repair of the Company’s and Individual’s Reputation and Multi Media Liability	Willful violation, Contractual Liability ,Antitrust, Bodily Injury and Property Damage, Criminal Acts, Intellectual Property
IDFC Bank Cyber Liability Insurance	Covers financial Liability of insured towards theft and misuse of third party personal data stored / held by the insured	Security & Privacy Liability, Multimedia Liability	Anti–trust, Bodily Injury/Property Damage, Insolvency, Employers Liability, Contractual Liability, Criminal Acts, Intellectual Property, Licensing Fee, Trading losses

Cyber insurance for you as an individual
If you think cyber insurance is apt only for bigger entities, businesses and corporations think again. Everything from e-commerce transactions to usage of social media to digital banking and cyber extortion means that you as an individual are just as vulnerable as larger enterprises if not more. Bajaj Allianz Individual Cyber Safe Insurance Policy offers an exclusive cyber insurance plan for individuals. Other insurers are likely to follow suit as the demand for cyber insurance for individuals grows.

Bajaj Allianz Individual Cyber Safe Insurance	Details
Eligibility	Any individual above 18 years of age using internet and accessing digital devices.
Sum Assured	Rs. 1 Lakhs to Rs. 1 crore
Coverage	Malware, IT theft, cyber extortion, phishing, cyber stalking
Benefits	Counseling Services and IT Consultant Services Cover
Exclusions	Dishonest and improper conduct, Unsolicited Communication, Unauthorized Collection of data, immoral or obscene services

Cyber insurance coverage and premiums
Insurers have various yardsticks to offer insurance coverage and reach the insurance premium amount for both enterprises and individuals. Use of best practices, safety mechanism like firewalls and educating employees against cyber crimes all play their part when reaching an insurance premium amount. For individual polices the premium rates also take into account the number of hours you spend online along with understanding of basic safety etiquettes when doing any online financial transaction.

Conclusion: Cyber insurance for individuals is today a must have protection plan in your armory. Protect your online dealing with a cyber insurance plan for a worry free digital world.