What Cyber Insurance Can Do For You And What It Can't

In today's digital age, where businesses and individuals increasingly rely on technology, cyber insurance has become a vital tool to protect against financial losses and reputational damage. However, companies must understand the various facets of cyber insurance in order to effectively leverage it.

- DEEPA SESHADRI & DAVID GEORGE

Cyber insurance coverage varies, depending upon industry and requirement. It typically covers business losses, including those for breach, interruption,

Then there is coverage for costs associated with identifying, containing and remediating network security breaches.

Reimbursement is provided for lost income and expenses incurred due to cyberattacks. If a business suffers electronic fraud, insurance will protect against fraudulent transactions such as unauthorised wire transfers or online purchases. There is also insurance for third-party claims arising from cyber-related incidents, including defamation, copyright infringement, and privacy violations.

While cyber insurance offers comprehensive protection, it is important to understand its limitations. Exclusions depend on policy and we list some common ones. Cyber insurance coverage typically does not extend to losses resulting from intentional acts of the insured or their employees. Bodily injury, diseases or death to any tangible item are not covered.

Cyberattacks related to acts of war or terrorism are often excluded.