Cybercrimes, ransomware attacks, and data breaches are becoming more and more common and severe in today’s time. As online activities are witnessing a surge in institutions, schools, colleges, offices, workplaces, it keeps on adding a high amount of data in the database. The data saw a huge incline, especially in the pandemic era. The whole point is that as the dependency on data is increasing, increases the chances of hackers accessing the sensitive data because of the big data pool.
As a result, a concept called cyber insurance is being prevalent these days. Cyber insurance is a type of insurance that protects organizations from the adverse effects of cyber attacks. A large organization is always at risk of getting hacked by criminals and hackers, hence, cyber insurance helps to mitigate that risk so that the company doesn’t suffer much financially.
In simple words, cyber insurance covers the risks, fees, expenses, legal costs for the organizations at the time of data breaches. The cybercrimes generally covered under cyber insurance includes data breach, hack, ransomware, spyware, distributed denial of service (DDoS).
What all is covered under cyber insurance?
Generally, the coverage protects the insured’s debit card, credit card, mobile wallet if the money has been stolen from any of these as a result of cybercrime. The policy also covers the losses incurred because of fake email attacks. The cost incurred because of prosecution is also covered under this insurance.
Phishing attacks are also insured under cyber insurance. The fraudulent use of banking cards and e-wallets by any third parties comes under it. The defense costs of defamation, the third-party invading the insured’s privacy, causing digital harm are also insured. Another addition is the losses incurred because of the loss of social media accounts.
Businesses these days are getting more and more skeptical and anxious about the growing data breaches and hacks. Not just small companies, large companies which very strong firewalls are also becoming victims of cyberattacks.
It is a well-known fact, that data loss costs the company financially, as well as mentally also as it will definitely affect the customer base of the company. Hence, it would not be a bad idea to get itself insured against all these risks which the companies might face in the future.
As it is always said and believed,” prevention is better than cure.”