What it covers: Two types of policies exist-corporate and individual. They protect users from online breaches on all internet-connected gadgets. Check a policy’s list of inclusions. Some of the key things that are covered include unauthorised online transactions, phishing and email spoofing, damage to e-reputation, identity theft, cyberbullying, e-extortion, cyberstalking, IT theft/loss, media liability claims, privacy and data breach by a third party, etc.
Some players offer a few additional features. “It also provides coverage for expenses incurred on counselling services that may be needed due to the stress or anxiety that the victim may experience,” says Ramalingam. Similarly, HDFC Ergo covers legal expenses.
Individual policies usually cover all the devices that an insured operates. This also includes bank accounts, debit and credit cards, as well as e-wallets. Family covers secure the person, his spouse, and two dependent children (regardless of age).
What’s excluded: Check a policy’s list of exclusions before opting for it. One policy may cover malware attack primarily while another may have it as an add-on cover. By and large, the key exclusions are dishonest and improper conduct, bodily injury or property damage, unsolicited communication, unauthorised collection of data, immoral/obscene services, to name a few.
These policies come with sub-limits. A claim for phishing or social media cover, for instance, could be restricted to 10 or 20 per cent of the total sum insured. The total sum insured can range from Rs 1 lakh to Rs 1 crore. These policies cover losses incurred due to online frauds
and crimes worldwide.
Cyber insurance is not enough: “Adopt a threat protection programme to prevent your email or data from being compromised, and back up your data regularly so that you are able to continue doing business even if you are attacked,” says Murali Urs, country manager, India of Barracuda Networks. Most anti-virus home security solutions protect all your internet-connected devices for prices that can range from Rs 500-10,000.