Can cyber insurance help secure business?

livemint.com:

—Name withheld on request In today’s digitally interconnected world, our reliance on online transactions for personal and business purposes exposes us to increasing cyber threats. As an entrepreneur dealing with multiple online transactions, your concerns are valid. Safeguarding this private and sensitive data is imperative.

A cyber insurance policy will help mitigate financial losses as it’s an effective risk management strategy in case of a security breach. Cyber insurance is tailored for both individuals and businesses, provided through distinct policies to safeguard against the financial consequences of cyber incidents. Individual policies cover threats like identity theft, cyber stalking, phishing, and extortion, among many others.

For your business needs, cyber insurance coverage includes third-party liability for privacy and data breaches, media liability claims, regulatory fines and penalties, and first-party losses like business interruption and cyber extortion. Legal expenses that may arise and data restoration costs may also be covered, with some policies extending coverage to crisis communication and IT consultant fees. Hence, I would recommend taking a comprehensive cyber insurance policy for businesses, ensuring financial protection against potential data breaches and related incidents.