Crucial Considerations To Check When Buying Cyber Insurance Coverage
Criminal acts have a deep impact on every section of society. The extent of damage they can do to a person depends on the exact nature of the crime. For example, if someone vandalizes a cab driver’s car, their entire livelihood falls at risk. The one type of crime that affects everyone today is cybercrime. Since most of us live a large share of our lives in the digital realm, nearly everyone is at the risk of being a victim of cybercrime.
To protect against cybercrime, people have been opting for cybersecurity insurance for some time now. It is a type of general insurance that protects the policyholder from cybercrime and digital scams. It protects the policyholder from the dangers of cyberattacks such as email spoofing, IT theft, cyber exploitation, whether they are browsing the Internet for personal use or business.
Although there are many cyber insurance plans available in the market, experts say that you should choose the ones that are specifically designed to cover individuals against potential cyber threats and risks. In addition, there are several things to check before purchasing a cybersecurity insurance policy. Here are all the things that you need to have in mind while buying cyber security insurance:
- Risk exposure
To know how you need to protect yourself, you need to know what exactly threatens you. Hence, you should assess your risk before choosing a plan. Simply put, find out how much of your personal data is exposed, such as internet banking, card payments, and financial transactions through e-wallets. Before purchasing a cyber insurance policy, one should look at the information stored on the digital devices as well as the social media accounts etc.
- Coverage amount
Understand the limitations of the liability you have when choosing a policy. Experts say policyholders should choose the appropriate coverage limit based on their risk assessment. Additionally, select the sum assured of your policy based on the risk covered. For example, some general insurance providers with their cyber security insurance policy offer coverage between ₹ 1 lakh and ₹ 1 crore. You should know exactly how much coverage you need.
- Threats covered
Before finalizing the insurance cover, understand the coverage offered by the insurance company. This will help you to understand the risks covered in the policy. Typically, these types of policies cover from 10 to 15 major cyber threats. These can include email spoofing, cyberstalking, malware attacks, identity theft, third-party data breach, media liability, cyber exploitation, social media liability, data theft, phishing, etc. * Standard T&C Apply
One of the most important parts of buying insurance is how much you buy it for. You need to know that the coverage you are buying is exactly worth the premium the insurance provider is charging you. You should also understand the deductible amount along with the policy premium. This is the amount that the policyholder has to cover in the case of a claim and the insurance company pays the rest. Keep in mind that some insurance companies offer lower premium rates but charge higher deductibles. Therefore, experts say it is better to pay an appropriate premium than to pay a higher deductible in the case of an insurance claim. * Standard T&C Apply
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.