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VMPL
New Delhi [India], February 4: In today's hyper-connected world, businesses heavily rely on digital technology to upscale their processes. However, this increased dependence has also made them more prone to cyber threats. The growing risk of cyberattacks is quite concerning for Indian businesses, with scaling financial losses, disrupted operations, and reputational damage as the outcomes. Therefore, it calls for a proactive solution like cyber insurance to ensure a safety net. Let's explore how a cyber insurance policy can help businesses take the challenges and thrive amidst the constant fear of cyberattacks. Did you know? In 2023, there were over 79 million cyberattacks in India, ranking the country third globally. It was a 15% hike from the previous year's record. The year 2024 also witnessed a sharp increase, with more than 500 million incidents. In April 2024, the country lost more than Rs1,750 crore to cybercrimes, according to the National Cybercrime Reporting Portal. What is Cyber Insurance? Cyber insurance is a specialised insurance product created for businesses to help them recover from the financial losses of a cyber attack. It is crucial to effectively manage the risks associated with cyber incidents such as data breaches, ransomware attacks, and business interruptions. Why Cyber Insurance is Crucial in 2025? Here are some main reasons why comprehensive cyber insurance coverage is essential in 2025: * Evolving and refined threats: Cyberattacks are becoming increasingly refined. Hackers use advanced ransomware and the power of AI to strike with more precision, greater speed, and an increased degree of deceptiveness. All these tactics make the attacks harder to detect and control. * Stringent Data Privacy Regulations: Data privacy laws like GDPR and India's PDPB levy hefty fines for data breaches. It ultimately increases the financial liability for businesses. * Increased Digital Appetite: Businesses heavily rely on digital infrastructure these days. It makes them highly vulnerable to cyberattacks, landing them in rough waters. What are the Key Coverages Offered by Cyber Insurance? Let's take a look at key coverage options you are likely to get with a dedicated cybersecurity insurance plan: * Data Breach Response Costs: It covers expenses like informing concerned individuals, credit monitoring charges, legal fees, etc. * Business Interruption: Good cyber insurance in India compensates for loss of income and increased expenditures as a result of system outages and operational disturbances. * Ransomware and Extortion Payments: It pays off ransom payments, covers data recovery charges, and compensates for business losses during downtime. * Third-Party Liabilities: It protects against legal cases and claims from clients, consumers, employees, or business partners. * Regulatory Fines and Penalties: It helps cover fines charged by regulatory bodies like GDPR for data breaches. * Cybercrime and Fraud: It covers losses from phishing, social engineering, and online scams. * Incident Response Support: It provides access to cybersecurity experts for incident response, forensic investigations, and legal counsel. What Additional Coverages to Consider in 2025? In light of the refined and complex nature of modern cyberattacks, businesses must consider the following additions to their cyber insurance: * Emerging Threats: Protection against engineered attacks like deepfake scams, AI-assisted phishing, etc. * IoT Security: Coverage for vulnerabilities in Internet of Things (IoT) devices, connected infrastructure, and industrial control systems. * Supply Chain Attacks: Guard against disturbances and losses resulting from cyberattacks on third-party vendors, suppliers, and other entities within the supply chain. How to Choose the Right Cyber Insurance Policy? Here are some of the crucial things to keep in mind when buying an insurance plan: * Risk Assessment: Thoroughly assess your business-specific cyber risks and susceptibilities. It will help you find the right plan for your business while minimising the odds of under insurance. * Policy Evaluation: Read the fine print carefully to understand policy limits, deductibles, premiums, inclusions, and exclusions. * Industry-Specific Needs: Tailor your plan to align with the unique threats and challenges faced by your industry. * Expert Guidance: Get in touch with reputable insurance brokers or cybersecurity professionals to ensure you select the most appropriate policy. What are the Benefits of Cyber Insurance for Businesses? Cyber insurance in India offers a number of benefits. It includes the following: * It offers financial stability by covering the costs of data breach responses, ransomware payments, and lost revenue, among others, after an event of cyberattack on your business. * It ensures data protection by encouraging robust security measures and facilitating data recovery after a breach. * It helps businesses meet data privacy regulations while reducing the chances of paying expensive fines for non-compliance. * Having a dedicated insurance plan for cybercrime demonstrates your organisation's commitment to security and laws and regulations while helping your company maintain customer trust after an incident. Conclusion The risks of cyber-attacks are ever-evolving. From typical data breaches to technologically refined AI-powered attacks and deepfakes, these incidents can significantly cripple business operations. It is where cyber security insurance comes to the rescue. Cyber insurance in India is no longer a luxury, but an essential investment for every business operating in the digital age. By having a comprehensive cyber coverage plan in place, businesses can mitigate the devastating impact of cyberattacks. Besides, they also gain a competitive edge by demonstrating a strong commitment to data security and business stability. (ADVERTORIAL DISCLAIMER: The above press release has been provided by VMPL. ANI will not be responsible in any way for the content of the same)
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