Cyber insurance represents a protective agreement where insurers safeguard organisations and individuals. (AI image)
Cyber insurance explained: In today’s digital landscape, cyber insurance serves as an essential protective measure, offering coverage against various online threats. This specialised insurance safeguards by covering expenses related to cyber incidents, including data breaches and ransomware attacks. The policy encompasses critical aspects such as litigation expenses, system restoration costs and reputational harm management. Given the rising frequency of digital threats, organisations across industries and scales find cyber insurance indispensable for their risk management strategy.Cyber Insurance: Key Points
- Cyber insurance represents a protective agreement where insurers safeguard organisations and individuals from financial damages caused by digital crimes.
- As cyber attacks grow more complex and frequent, such protection has become crucial for both commercial enterprises and private citizens.
- The coverage encompasses direct financial impacts, including costs associated with operational disruptions, system restoration and monitoring of credit activities.
- The policy extends to cover external liabilities, such as legal expenses stemming from data violations, reputational harm, breaches of intellectual property and associated litigation.
- Numerous
insurance providers now present diverse coverage options tailored for personal, household and corporate protection againstdigital security risks .
With inputs from Centre for Investment Education and Learning content which appeared in Economic Times
