The world has started to move towards a global landscape with not just business houses, but people having an online identity. While this is a positive move, the underlying risk of cybercrimes continues to loom. Cyber frauds have been in existence since the internet came into existence. But the frequency of crimes has shot up along with the types of crimes conducted.
As per a publication by the National Crime Records Bureau (NCRB), the cybercrime cases registered in 2020 rose by 11.8% from 2019 levels . While the reported numbers are for registered cases, there may be several more that went unregistered. Thus, cybercrime is a situation that not just business houses, but also individuals must safeguard themselves against.
In this endeavour, cybercrime insurance comes to the rescue. This article mentions a handy checklist if you are planning to buy one. Continue reading to know more.
Checklist for cyber insurance coverage
Cyber insurance for individuals may seem like an alien concept, but its importance cannot be undermined. The cyber insurance coverage checklist is divided into three parts namely, policy inclusions, restrictions, and exclusions.
1. Policy inclusions
When picking cyber insurance, it is important to know what is included in your policy. They define the scope of your cyber insurance plan to cover certain situations. Inclusions are alternatively referred to as clauses. Here are some of the common inclusions to check for.
- Financial losses due to phishing or spoofing
- Unauthorised financial transactions
- Loss of data, software programmes or systems
- Disruption in business activity
- Data theft
- Media liability
- Identity theft
- The cost and losses relating to identity theft
- Loss of personal data and privacy concerns from a third-party data leak
- Damage or loss due to cyber-terrorist activities
- The financial cost of court summons due to cyber extortion
- Replacement, repair, and upgradation cost of computer systems
- Business continuity issues
* Standard T&C Apply
2. Policy Restrictions
When shortlisting policies that offer cyber insurance coverage, it is essential to note the restrictions placed by a policy. These may be in the form of sub-limits in your policy. While these restrictions might differ among insurance companies, it is essential to make sure they aren’t averse to your requirements.
Sub-limits in your cyber insurance coverage limit the policy’s scope to a specific extent and do not entirely exclude the coverage. When buying a policy, it is advisable to thoroughly read the policy terms to avoid a future rejection of your claim. *
3. Policy exclusions
The third part to check for when buying or at insurance renewal of your cyber insurance coverage is the exclusions of your policy. These events are expressly not covered by the insurance company. Here are some of the general exclusions:
- Physical harm or property loss.
- Deliberate loss.
- Collecting data without adequate authorisations
- Losses in trading and cryptocurrencies.
- Claim pertaining to offline activity.
- Unexplainable losses.
- Losses that do not pertain to the specific cyber event.
* Standard T&C Apply
In an online world, data is the new oil and hackers want to get their hands on it. With a cyber insurance policy, you can safeguard your interest in case things go down south.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.