With the higher use of digital platforms and technological advances, cybercrime is growing at an increasing rate. According to various industry findings and reports, the increased risk posed to valuable digital assets by cybercriminals has subsequently increased the need for cyber insurance.
Supriya Rathi – Wholetime Director, Anand Rathi Insurance Brokers, says, “A retail cyber plan that offers multiple covers through their policy, such as Identity theft, reputational injury, cyberbullying, cyber extortion, etc. helps individuals protect themselves from such cyber-attack.”
Here are the coverages of the retail Cyber Insurance policy;
1. Identity theft:
This cover includes Lost wages due to identity theft. Rathi says, “It also covers costs related to the refiling of rejected loan applications, various credit programs if the lender rejected the previous filing due to incorrect information. Expenses related to notarizing affidavits and other similar documents for law enforcement agencies and financial organizations, are also taken care of.”
The cover also includes telephone calls and postage are required to correct records related to the insured’s identity, along with the cost of re-issuance of identity documents posts the theft.
2. Unauthorized transactions:
This cover includes any direct financial loss resulting from a transaction not made/authorized by the insured. Note that the incident has to be reported to the insurer and the police within 72 hours of it taking place.
3. Reputational Injury:
This cover includes publication that harms the insured’s reputation and result in loss of wages for the insured. “It covers expenses involved in hiring an IT specialist to remove such publication and also covers fess for psychologist consultation if required. The insured must report the incident to the insurer and the police within 24 hours of discovering the publication,” adds Rathi.
This cover includes harassment, character defamation, intimidation, invasion of privacy, covers fees for a face-to-face consultation with psychologist, rest and recuperation expenses, and cost for temporary relocation if needed.
5. Cyber Extortion:
This cover includes costs for data restoration and forensics, money paid to end/prevent a threat, and the cost of IT security consultants hired by the insured to manage the threat.
6. Malware Intrusion:
This cover includes the cost of data restoration and any lost wages due to corruption, loss or damage to data.
7. Legal Expenses:
This cover includes the reasonable fees/expenses that the insured may incur for an initial consultation with a lawyer, pursuing or defending a legal action against or by a third party. “It also covers the costs involved in removing any false criminal or civil charges made against the insured,” says Rathi.
8. Data Restoration Costs:
This cover includes costs and expenses up to 30 days, for any data restoration required due to cyber extortion, threat or introduction of malware into the insured’s computer system.
9. Forensic Expenses:
This cover includes the costs incurred up to 30 days, for hiring a digital forensic expert to help in resolving incidents such as cyber extortion and cyberbullying.
10. Consequential Losses:
This cover includes costs associated with any penalty that the insured may have to pay to a bank or any financial organization for not maintaining the minimum required balance in the insured’s bank account or missing an EMI payment on a loan.
Rathi adds, “This policy can be taken by any individual retail client who has access to any digital means of connecting with the web world. Any person using any modern-day gadgets and exposed to the risk of being attacked by a hacker can protect themselves through this policy.”