Cyber Liability Insurance: The saviour amid increasing cyber-attacks
With over 600 million internet users, India is the second-largest internet population in the world. The increasing internet use has paved the way for organisations to tap into the digital world and drive customer satisfaction through leveraging advanced digital technologies. However, with so much of Third Party Sensitive Data floating across in the digital space, cyber criminals are rapidly groping Indian Businesses.
Today, majority of the companies are suffering huge financial losses as a result of hacking or a data breach. Such Cyber crimes carry multiple implications on an organisation, forcing them to spend a massive amount to recover their IT systems, Sensitive Data, brand value and customer trust. Owing to how vulnerable digital technologies can be, the optimal way to indemnify yourself against cyber crimes is through having a comprehensive Cyber Liability Insurance program in place.
The Increasing Cases of Cyber Crimes
According to the National Crime Record Bureau’s data, India recorded a massive rise of 63.5 per cent in cybercrimes in 2019. As per the released data, 2019 saw 44,546 cases of cybercrime compared to 28,248 cases in 2018. The massive rise forced the Indian economy to suffer a total loss of 1.25 trillion rupees. Since the Coronavirus pandemic started in March 2020, cybercrimes in India have increased multifold, with COVID themed scams pushing organisations to consider adding a Cyber Liability Insurance into their portfolio.
Cyber Liability Insurance is the need of the hour
A data breach or a hacking results in significant exposure of a company’s balance sheet, making the organisation’s budget tumble. Through a comprehensive Cyber Liability Insurance policy, organisations can ensure coverage of their financial exposure in the event of any cybercrime. It can help in covering expenses related to:
Third-Party Data Breach
A data breach or a hacking results in a significant exposure on an Organisation’s Financials, which might go up to eating up your bottom lines significantly. Through a comprehensive Cyber Liability Insurance policy, organisations can ensure coverage of their financial exposure in the event of any cybercrime. It can help in covering expenses related to:
Data Breach or Hacking Costs
Organisations rely on advanced algorithms to analyse customer data and provide valuable insight to the organisation. Organisations deem this data more valuable than any other asset as it defines the direction and goals of the organisation. In case there is a data breach or a hacker holds the data demanding ransom, the organisation can incur massive financial loss due to system downtimes and the recovery of the data. A Cyber Liability Insurance policy ensures that these expenses are taken care of in case of data breach or hacking.
Copyright Infringement Expenses
Almost every organisation uses digital channels such as social media for advertising and marketing their products or services. Unfortunately, social media usage can result in several legal claims such as defamatory posts, comments, intentions or copyright infringement. All of these claims can bring on a time-consuming and expensive legal battle. A Cyber Liability Insurance reimburses an organisation regarding the expenses incurred on these types of expenses.
Goodwill Recovery Expenses
The most significant loss an organisation can experience is the reduction in customer trust and overall goodwill. Clients, suppliers or customers do not trust to do business with an organisation that has experienced hacking or any other type of cybercrime. A Cyber Liability Insurance covers the cost of hiring a public relations team or starting a campaign to recover customer trust and lost goodwill.
In 2018, The Data Security Council of India observed a 40% rise in the purchase of Cyber Liability Insurance in India. Expected to grow at a CAGR of 27% to INR 1.59 lakh crore in 2024, Cyber Liability Insurance is becoming the frontrunner in mitigating the losses incurred due to cybercrimes. PINC Insurance is an experienced insurance broker with expertise in comprehensive Cyber Liability Insurance policies. The in-house risk managers analyse the organisation inside out to recommend the most suitable Cyber Liability Insurance policies. You can visit PINC Insurance to safeguard your business against cybercrimes.