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According to a Digital 2022 report, there were about 658 million internet users in India in January 2022. A Kepios analysis also showed that internet users increased by 5.4% between 2021 and 2022 *. 

While the popularity of the internet is increasing, instances of cybercrimes are also on the rise. Within the first two months of 2022, India has reported 212,485 cases of cybercrimes already *.

Cybercrimes often lead to considerable financial losses and third-party liabilities. In such scenarios, a cyber insurance policy proves relevant. Let’s understand why.

Cyber Insurance 

A cyber insurance policy is one that covers the financial losses that you might suffer due to an unforeseen cyber-attack or cybercrime. 

Coverage under cyber insurance plans

Cyber insurance plans are quite comprehensive when it comes to coverage. These plans provide coverage for the financial losses that you might suffer in the following instances –

Damage to your computer or laptop that might require repairs,

Hardware and software damage due to cyberattacks,

Third-party claims in the case of data theft, identity theft or security breach,

Legal costs suffered in the case of a lawsuit filed by third parties for a security breach,

Interruption of business,

Penalties suffered.

What is not covered?

Cyber insurance plans are quite comprehensive. They also allow optional extensions to enhance the scope of the policy. However, there are some instances which are not covered. Such instances include the following -

Fraudulent acts and cyber crimes caused by the insured individual himself,

Losses suffered due to cybercrimes committed before or after the policy tenure,

Electronic disturbances that might damage the hardware and/or the software,

Physical damages to the computer system.

Why cyber insurance makes sense?

If you are an individual whose line of work depends extensively on the use of the internet and computer, a cyber insurance policy becomes useful. For businesses, on the other hand, the policy is quintessential in safeguarding their finances in the event of unexpected cyberattacks. Here are some reasons that make the cyber insurance policy a must-have –

It helps in protecting the financial position of the insured in the event of a cyberattack.

It proves useful in compensating third-party claims if they incur a financial loss due to theft of their data held in your custody.

The legal costs of a lawsuit can be tremendous. By covering such costs, the policy provides all-around protection, financially.

Companies can maintain their image and present themselves to be financially capable of dealing with cyberattacks.

A cyber insurance policy is affordable, available online and can be bought instantly. So, invest in one and protect your finances against unexpected cyber threats that have become as common as internet use.