The present world is a connected world , connected thru internet. Also digitisation is now the mainstay of our life . Mobile and Internet Banking, Social Media and E-Commerce spending are common features of our life . Our personal data is being generated, transmitted, and stored on to various digital devices is also growing at an alarming pace . Everybody including the Government and the various law enforcement agencies are concerned about data safety and misuse of this data.
The importance of this data and the complexity of the systems that support its transmission and use, combined with the possibility of remote and anonymous access, have created a gamut of Cyber Risks such as Identity Theft, Malware Attack, IT Theft Loss, Phishing, E-Mail Spoofing, Cyber Extortion, Cyber Stalking, Media Wrongful Act etc. to which Corporates & Individuals both are exposed.
Its no more a scenario from a scifi movie , its real and breathing down our neck , many a times these cyber attacks can burn a big hole in our pockets. A Cyber Security Insurance Policy helps us in case anything untoward happens in this arena.
Previously this policy was available for corporates only , now its available for individuals as well.
Cyber Security Insurance Policies are designed to protect commercial businesses/individuals against a wide range of first and third party liability occurring out of cyber exposures associated with e-business, internet, networks and information assets.
Companies with access to private & confidential information about their customers have a responsibility to keep it secure. Equally, companies who have a web presence or a dependency on technology have emerging content and transactional exposures.
Cyber risk is steadily increasing: Security/Data breaches affect hundreds of millions of records a year and reports of breaches continue to rise at a dramatic rate. The introduction of viruses and unauthorized access are well known examples.
First Party Liability:
- E-Theft Loss as a consequence of having transferred funds or property or given any value due to the fraudulent input of data into a computer system or through a network into a computer system.
- E-communication Loss occurring due to a customer having transferred funds or property or given any value on the faith of any fraudulent communication for which loss you are held legally liable.
- E-Threat Loss, including the cost of a professional negotiator and any payment made or any fund or property surrender intended as an extortion payment.
- E-Vandalism Loss, even when the vandalism is caused by an employee.
- E-Business interruption, including Extra Expenses.
- Privacy Notification Expenses, including the cost of credit monitoring services or similar services for affected customers. (Subject to a sub limit)
- Crisis Expenses, including the cost of public relations consultants. (Subject to a sublimit)
- Reward Expenses, including informant costs. (Subject to a sub limit).
Third Party Liability:
- Disclosure Liability, including customer claims due to system security failures resulting in unauthorized access to or dissemination of private information on the Internet.
- Content Liability, including claims for intellectual property, trademark and copyright Infringement.
- Reputational Liability, including claims alleging disparagement of products or services, libel, slander, defamation and invasion of privacy.
- Conduit Liability, including claims arising from system security failures that result in harm to third-party systems
- Impaired Access Liability, including claims due to system security failure resulting in systems being unavailable to customers.
- Defense Costs cover available for costs incurred in defending any claim brought by a Government agency or licensing or regulatory organization. Defense Costs in advance of the final disposition of any cyber liability claim and within 30 days of receipt of invoice for such costs. Claims definition includes Extradition proceedings.
- Prior Notice Exclusion: Excludes prior notice of a fact or circumstance that has been accepted by the previous insurer rather than notice given.
- Full Severability of Exclusions: knowledge of one Insured Person is not imputed to another and only knowledge possessed by the Chief Executive Officer, Chief Financial Officer or the Chief Operating Officer of the Organization will be imputed to the organization.
Claim arising out of or resulting from any of the following:
- Fraudulent act or will full violation of any such law, regulation by an insured.
- Bodily injury, sickness, disease, death of any person or damage to any tangible property
- Mechanical failure, gradual deterioration, electric disturbance, media failure or breakdown or any malfunction.
- Combines benefits of third-party (cyber liability) and first-party (cyber crime expense)
- No "security maintenance" exclusion.
- Disclosure Liability coverage extends to outsourced data processing and data storage
- Privacy notification expenses coverage is triggered without a requirement for a claim or a regulatory requirement mandating the notification.
- Covers Cyber hacking and cyber attack incidents.