CyberPeace Foundation association with Autobot Infosec and United Nations Global Compact Network India has launched Cyber Insurance Advisory, a crucial element in corporate risk management strategy in wake of the global Twitter hack. Cyber insurance is an insurance product that organizations use to protect themselves from digital risks and risks related to their computing environment, IT activities, and infrastructure in general. The losses covered under cyber insurance are mainly divided in two categories that include; first-party losses, that are direct losses beared by the organization and third-party damage cost such as customer, vendor, partner and contractor need to incur due to cyber incident.
Cyber Insurance covers aspects like legal costs, regulatory penalties, investigation, notification costs, PR costs, credit monitoring costs and breach coaching. Though while purchasing the insurance it is also necessary to know what incidents are not covered by cyber insurance these include intellectual property theft, remediation of breaches and protection from reputational risks.
On this development Vineet Kumar, Founder, CyberPeace Foundation said, “With a significant increase in cyberattacks in the first three months of 2020 and the entire world being vulnerable to these attacks it is crucial and advisable to invest sensibly in Cyber Insurance. However intact, the cybersecurity framework is, none of it can guarantee 100% protection from cybercrimes or attacks. Thus cyber insurance needs to be a vital element across every organization’s risk management strategy which does not remove risks but only transfers it.”
COVID -19 has changed the way businesses used to operate. Growth in the number of virtual workers and increased digitization has also elevated the number of cyberattacks taking place. As per a recent Verizon report, 45% of the data breaches were due to hacking, but surprisingly 22% were casual errors.
This phenomenon poses a warning for organizations to be prepared for both external or internal threats, intentional or accidental information damages. At this time cyber insurance has emerged as an essential part of an enterprise’s cyber risk management plan and protects the organization’s information assets by transforming cyber risks to insurance providers. Even organizations are understanding that these kinds of security lapse can devastate the entire system owing to the magnitude of losses.