Cyber Insurance

Cyber Insurance

Cyber-insurance is an insurance product for businesses and individual user’s protection from Internet-based risks, and more generally from risks relating to information technology infrastructure and activities.

Cyber insurance typically includes indemnification from lawsuits related to data breaches, such as errors and omissions. It also covers losses from network security breaches, theft of intellectual property and loss of privacy.

FACTS

  • Cyber Attacks are turning up to be No.1 Business Risks around the world, no exception to Indian businesses, and much talked topic in board meetings.
  • India 3rd worst country impacted by Cyber Attacks
  • India’s transition to digitization has caused a spike in Cyber Attacks
  • FireEye sees repeat Cyber Attacks cases in Indian Companies
  • According to a survey 60% of Cyber Attacks happen due to involvement of Internal employees

HOW CAN WE HELP YOU

Cyber Insurance

COSTS THAT MAY ARISE DUE TO CYBER ATTACK

  • Public embarrassment
  • Loss of customers/revenue
  • Damaged reputation/brand
  • Loss of profit
  • Regulatory compliance
  • Corrective actions, liability and fines/penalties
  • Allegation against board – lack of oversight
  • Forensic cost /defense cost /marketing cost
  • Failure to maintain adequate insurance
  • When organizations lose money, shareholder suits are not far behind – no exception for data security losses

HOW IT WORKS

Cyber Insurance

EXAMPLE 1 : INDIAN IT ACT

Indian IT Amendment Act 2008(SEC 43A)

IT Act 2000 was amended by Ministry of Information Technology and is known as IT amendment act 2008. As per IT Amendment Act 2008 Sec (43A) if a company or an organisation which fails to protect data shall be liable to pay damages by way of compensation to the person effected.

EXAMPLE 2 : EU GDPR

Under Article 83 (5) GDPR, the maximum penalty for companies and organizations for failure to comply with the General Data Protection Regulation can amount to upto € 20 million or 4% of the annual worldwide turnover, whichever is greater. According to Art. 83 (4) GDPR, there is a graduated approach to fines. Example, a company can be convicted with 2% because it does not keep its records in the correct order (Article 28).


Director’s Liability

Cyber Security Due Diligence means taking “Proper and Reasonable Care and Caution” while dealing with Online/Technological Transactions and Activities. For instance, if a person is a Telecom Service Provider, it has the “Responsibility to Ensure” that its Telecom Infrastructure is not “Misused” for committing Cyber Crimes.

ABOUT

Headquartered in Mumbai and founded by Eminent and Internationally acclaimed Thought Leaders from the Cybersecurity, Cyber Law, and Management fraternities, We believe in adding Value to your Business & Technology journey by means of a Strategic, Focused & Problem-Solving approach.

We are firm Client-Advocates and ensure that our core founding principle of Strategic Innovation helps synergistically transform your Organization for the better by effecting next-generation outcomes.

CONTACT US

Office No. 3, Pinakin Society, Mithagar Road, Mulund (E) Mumbai - 81

Phone (India) : +91 8291940005/6/ +918828318827

E-mail : info@aryavconsulting.com