Cyber insurance covers third-party-liability for data breach involving personal data or corporate data. It pays the costs of dealing with administrative investigations and includes cover for fines imposed by data protection regulators to the extent such fines are insurable under law. Cyber-Insurance also pays for services of experts to protect reputation. Costs and expenses of dealing with cyber extortion are also covered under cyber-insurance.
Cyber risks have radically increased over the last decade. With India being ranked as one of the top 3 targets of cyber hackers, it is necessary to avail cyber insurance. Cyber Insurance is a prerequisite for every enterprise that uses computers and networks in its day to day operations. It is one of most effective tools for managing cyber risk.