I have a small information technology consultancy firm and we store a lot of confidential data of our clients. Are there any companies who would provide insurance against any possible cyber threats? What kind of facilities do they provide?
—Parth Banerjee
Cyber risk insurance is prevalent to cover losses due to cyber attacks. A cyber attack could lead to losses incurred by the policyholder as well as an outside person or firm doing business with the policyholder. The latter may sue the policyholder for damages and compensation. A cyber policy covers the cost to defend the suit, and any compensation awarded by the court. The policyholder may have to incur costs to restore data, which is also covered by a cyber policy.
Aside from the above, insurers offer add-ons to hire consultants for specialized tasks such as public relations management. Such consultants can help notify affected parties in case of privacy breach, or mitigate the damage to the company’s reputation. Some insurers have a panel of such experts who specialize in addressing cyber threats. So, a policyholder can get ready advice in case of distress.
Abhishek Bondia is principal officer and managing director,…
