Do’s and Don’ts while Buying a Cybersecurity Insurance Plan

Cybersecurity

Cybersecurity

With a cybersecurity insurance plan, your digital footprint will be protected against email spoofing, cyber extortion, privacy breach, etc.

The dependability on the internet raises a host of concerns that surround the basic security and integrity of online communication. Greater dependency on the internet makes us invariantly exposed to various cyber risks. As our life’s go digital, Cybercrimes are on the rise. Banking and Financial Services is the most exposed sector amongst all. This sector attracts one of the highest public traffic for financial transactions while is a favourite amongst the cybercriminals who are looking for an opportunity to siphon off your hard-earned money!

While you go to buy a protective cover for your family against the perils of Covid-19, you must also safeguard your online transactions with a cyber insurance policy that offers financial protection against a wide spectrum of cybersecurity threats. However, to secure complete and effective coverage against cyber risks, it important to choose your Cyber Insurance carefully. Here are some important things to keep in mind while buying a Cyber Insurance policy: –

  • The financial loss that happens from being a victim of phishing and email spoofing
  • Fraudulent online transactions registered on one’s financial accounts
  • Reputational liability, that includes data theft and privacy invasion
  • Losses and expenses and the prosecution cost related to identity theft
  • Restoration cost for data retrieval and protection against ransomware attacks
  • Damage claim against third-party for data breach and privacy breach
  • Cyber extortion loss and compensation for attending Court summons.

Besides, you must check the following while choosing a Cyber Insurance plan–

 

Check the coverages

Before buying cyber insurance, the policy makes sure you check what all your insurance plan would cover. Certain of them may treat the inclusions as ‘clauses’ while others may call them the ‘limit of liability’. Some policies may not cover malware attacks, while some may offer it as an optional cover. Malware is a major cybersecurity threat; firewalls can offer some degree of protection against it. Hence you must ensure that you choose a coverage plan that should offer the following coverages: –

  • E-mail spoofing.
  • Media liability claims cover
  • Cyber extortion cover
  • Privacy breach and data breach by a third party
  • Identity theft cover
  • Cyberstalking
  • IT theft loss cover
  • Malware cover
  • Phishing cover

 

Ensure that counselling service fees are covered

Dealing with cybercrimes such as cyber extortion or cyberstalking can be stressful, which may lead to immense mental stress. Though prescriptive counselling may prove to be helpful, it can also turn out to be an expensive affair. Therefore, ensure that your cyber insurance policy covers the consultation fees incurred during visits to psychiatrists, psychologists or counsellors to help the insured deal with anxiety or medical conditions that are a direct result of cybercrime.

 

Make Sure Your Policy Includes the Coverages You Need

  • Business Interruption & Extortion

Cybercrimes and attacks could impact an enterprise’s daily operations that lead to loss of revenue. Choose a plan that covers potential business loss of business, crisis management, and cyber extortion.

  • Customer and Employee Data Loss

A good cybersecurity plan covers all data breaches, data compromise response expenses like fines and penalties, identity recovery and data compromise liability.

  • Third-Party Lawsuits

If a business network is negatively affected by a security incident which impacts a third party, then your cyber insurance policy should cover potential lawsuits.

  • Payment Fraud

If you or your employees get deceived on the dark web and end up transferring or diverting money, to a criminal consider including that loss as well.

Before buying a cyber insurance cover weigh what coverages and protection you need to be safe from a cybersecurity threat. Seek a cover that is based on your specific business needs. For example, if you must comply with the Payment Card Industry Data Security Standard (PCI DSS), find a policy that covers PCI fines and penalties.

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