While there are several cyber insurance plans available in the market, experts say to opt for the ones that are designed specifically to cover individuals against potential cyber threats and risks.
To get cover against cyber-crimes, people have been opting for cybersecurity Insurance for some time now. It is a type of general insurance that covers the policyholder against cyber-crimes and digital frauds. It protects the policyholder from risks of getting exposed to cyber-attacks such as email spoofing, IT theft, cyber extortion, etc. while browsing the internet be it for personal use or for business.
While there are several cyber insurance plans available in the market, experts say opt for the ones that are designed specifically to cover the individuals against potential cyber threats and risks. Additionally, there are various things one should check before buying a cybersecurity insurance policy
What’s your risk exposure?
Evaluate your risk associated before opting for a plan. Simply put find out how much of your private data is exposed, such as financial transactions are done through internet banking, card payments, e-wallets. Along with information stored on digital devices, social media usage, etc. should be looked at before buying a cyber insurance policy.
How much will be covered?
While opting for a policy understand the limitations of liability that you need to opt for. Experts say policyholders should opt for a sufficient limit of liability, based on their evaluation of risk exposure. Additionally, choose the sum insured of your policy depending on the risk covered. For instance, Bajaj Allianz offers Sum insured options ranging from Rs 1 lakh to Rs 1 crore with their individual Cyber Safe Insurance Policy.
Before finalizing an insurance cover, understand the coverages offered by the insurance company. This will help you understand the threats covered in the policy. Usually, these type of policies covers against 10 or 15 major cyber threats – email spoofing, cyberstalking, malware attacks, identity theft, data breach by third party, media liability, cyber extortion, social media liability, it theft loss, phishing, etc.
Along with the premium understand the amount of deductible of a policy. It is the amount, that the policyholder has to bear first and the insurance company pays over and above the same, in case of a loss incident. Keep in mind that some insurers offer low premium rates, but charge exorbitant deductibles. Hence, experts say, it is better to pay a decent premium than pay high deductibles in case of a claim.