Should you consider having cyber insurance?

As you may have been reading in newspapers, a large number of cyber-crimes are occurring on a daily basis. Looking at the rise in these crimes insurance companies have added cyber insurance to their product line. So, what is this cyber insurance and should you consider having it?

Cyber insurance protects policyholders from online breaches on all gadgets that are connected to the internet. Though there are certain things that you should consider before buying cyber insurance.

1. It should cover a financial loss due to you being a victim of email spoofing and phishing.

2. It should cover fraudulent online transactions via one's bank account or debit card or credit card or e-wallet.

3. It should cover you against the reputational liability, which should also include claims against defamation and any invasion of privacy.

4. It should also cover the losses and expenses related to defence and prosecution cost related to your identity theft.

5. Cover against restoration cost to retrieve data or computer program damaged due to the malware.

6. Cover against expenses incurred on counselling services.

7. Cover for damages against third-party for the privacy and data breach.

Your decision to buy cybercrime insurance completely depends on the things that you wish to cover and the coverage available. Currently, there are only two insurance companies that are providing this type of insurance. So, there are no other options to compare before you buy. In those insurance policies also, there are certain sub-limits. This means that say you have a policy with sum assured of Rs. 3 lakh and your claim are of Rs. 2 lakh and in the policy, there is a sub-limit for which you have claimed say is 50 per cent then you would be getting a claim of Rs. 1.5 lakhs and not Rs. 2 lakhs. This also must be considered before buying.

So, who must have this type of insurance? It is well-suited for people who have a substantial amount of cash lying in bank accounts and frequently use online mode to make payments and also indulge in downloading stuff from non-reliable sources. So, if you are one of them, you can have cyber insurance. Also, you as well as other family members should try to be safe while using the internet and devices that are connected to the internet to avoid cyber threats.