What Are the Advantages of Having A Cyber Insurance Cover?

Cyber Insurance

We witnessed a global pandemic during 2020. With working from home becoming the new normal, majority of the business dealings were carried over the internet. With businesses switching to online mode for its operations, there was a rise in the potential cyber threats. With an attempt to safeguard your business, a cyber insurance policy is the best bet. Not only it safeguards your business from financial loss, but also assumes the liability due to third-parties.

Here are some of the advantages of buying a cyber insurance coverage for your business –

#1 Comprehensive coverage

A cyber insurance plan covers not just one type of cyber threat but many different types at once like identity theft, cyber stalking, malware attack, phishing scams, email spoofing and more. Depending on the type of policy selected, it offers protection for first-party as well third-party losses. These losses can be due to a flaw in the IT infrastructure of your business or data frauds or a system vulnerability. Whatever be the reason, the financial losses are covered by the cyber insurance policy.

#2 Industry based

A cyber insurance policy’s coverage differs based on the sector your business operates within. For instance, the threats faced by an entity offering financial services like lending facilities has different risks when compared to an e-commerce operator. With a general insurance plan that covers cyber security, a policy is available for various types of business verticals.

#3 Universal recognition

Cyber insurance also understands the contractual liabilities a business has within its supply chain. When you want to seek loan in form of funding or to want to drive additional investment, a cyber insurance plan serves as a robust strategy to deal with cyber-attacks for such investors.

#4 Quick and hassle free  

Now-a-days availing a cyber insurance has become hassle free. With most plans available over the internet, it can be purchased based on the needs of your organisation customising it to your requirements. Further, the documents required are minimal and most of them need to be uploaded without the hassle of physical submission. Thus, a suitable cyber insurance plan can be purchased within a couple of minutes ticking all the right boxes for your business.

How does a cyber insurance policy benefit you?

A cyber insurance policy includes coverage not only for first-party losses, but also third-party liabilities. Any losses to your business is compensated subject to terms and conditions due to various cyber frauds which even involve theft of valuable data. Further, these policies even cover the financial cost of ransomware and other malicious software compromising the integrity of the data.

Apart from the above, third-party liabilities may arise in the event your data is compromised. For instance, a data leak of your organisation may provide unauthorised access to third-party data for which you may be held liable. Some policies also include coverage against intellectual property, copyrights and even trademarks.

Lastly, these policies also cover events like business interruption due to cyber threats. These attacks can hamper the normal activities of a business thereby providing compensation in such case. Depending on your policy’s coverage, some plans even pay for the cost of restoration of the data and information systems to resume business activities.

So, do not ignore the advantages and benefits of cyber insurance cover in 2021 and get one for your business today! Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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