Life and General Insurance

        In 2010-11 India was the 10th most heavily cyber-attacked country; today it is second only to United States. With internet usage rising exponentially-from 202 million users in march 2010 to 412 Million in march 2011 to 485 million in march 2012, India is now second only to China in the number of devices(including cell phones) connected to the internet.

         This also makes India uniquely vulnerable. Intelligence source say that, in the recent past, malicious activities against Indian networks have originated from hosts in 20 countries: Emphasising the amorphous nature of cyber-attack, sources clarify that could have been routed through those countries without the hosts even being aware of this activity. During the same period, several attacks abroad were detected as originating from hosts located in India. Keeping this in mind and recent incidence, now the government is rolling out and extensive policy.

          Cyber liability insurance coverage is designed to protect IT businesses against liability and expenses arising from the theft or loss of data, as well as liability and expenses arising from a breach of data security or privacy, particularly when you are hosting client information. While your clients should carry their own cyber liability for the data and personally identifiable, confidential information stored on their servers, IT firms are wise to protect themselves with their own third-party coverage as well.

Cyber liability refers to an IT firm's liability when it is responsible for the security and privacy of a client's data stored on the IT firm's servers. Cyber liability insurance policies typically include coverage for:

 

First Part Liability:

• Denial of service attacks or inability to access websites or systems

• Unauthorized access to, use of, or tampering with data

• Disclosure of confidential data (invasion of privacy)

• Loss of data or digital assets (malicious or accidental)

• Introduction of malicious code or viruses

• Cyber extortion or terrorism threats

• Personal media injury (defamation, libel, or slander) from electronic content

• Regulatory action, notification, or defense expenses

• Crisis management and public relations expenses

• Data or system restoration.

• Business interruption expenses

 

 

Third Party Liabilities:

• Allegations that arise from a breach of confidentiality/data protection legislation

• Allegations of libel and slander for example due to email, web site or employment advertising content

• Claims that arise from damage to a Third Party's computer systems such as through forwarding a virus, DOS attack or an employee hacking or committing fraud

• Claims arising from third party consequential loss through not being able to access your computer systems/website.

• Protects against claims for losses from another organization or individuals affected by a security breach

• Includes network security liability that covers losses due to the theft and misuse of data, including payout to victims as well as the recovery cost

• Includes network liability (downstream) protecting against denial of service attacks and forwarding of viruses

• Covers media liability including infringement and liability costs due to internet publishing, including websites, e-mail, instant messaging, and chat rooms

• May also include coverage against any liability of third-party loss arising from the negligence of an organization.

 

          Cyber liability insurance protects IT businesses that host personally identifiable information or private data. Companies that provide software as a service, web hosting services or data storage services are at the most risk, but any IT service provider that handles private client information should consider purchasing this coverage. For example, an IT consultant who stores a client’s private employee files on a laptop temporarily is at risk for damages if that laptop should be stolen.