When you hear “cyberattack,” you likely think of data breaches at a large company or retailer, but do you ever consider that you could be personally attacked? Pandemic has resulted in a digital revolution and nowadays, we rely heavily on the internet for personal and professional work. It has opened up a door for various online scams. Given this, it is important to know how we can protect ourselves against it.
A personal cyber insurance policy protects daily online users from risks that could arise from cyber-attacks. It covers multiple online risks ranging from the most common to severe ones, namely – privacy and data breach, social media hacking, cyberstalking, IT theft, malware damage, email phishing, email spoofing, media liability, cyber extortion, and personal identity theft.
Here are a few things one should keep in mind before buying an individual cyber protection policy
1. Identifying the risks:
It’s crucial to figure out exactly where your real risks are because that will determine what kind of cyber insurance you will need to purchase. As an individual, your private data is at higher risk for numerous reasons like financial transactions done through various devices, e-wallets, card payments; the amount of data stored on digital devices; social media usage, etc. All these risks should be evaluated before purchasing the cyber insurance policy.
2. Choose wisely the limit of liability to be opted:
Based on the evaluation of your risk exposure, you should choose the sum insured amount. The sum insured can range from Rs 1 lakh to Rs 2 crore. Depending on your need and usage, you can opt for individual or family cover. Please note that there is a sub-limit to each risk covered and you cannot claim in addition to this limit.
3. Understand everything you get with your policy
It is essential to understand the coverages provided by your insurer so that you are aware of the threats covered in the policy. Having knowledge of the inclusions and exclusions of the cyber insurance policy makes it easy for you to file a legitimate claim. You should read the fine print carefully and understand how each trait is defined by the insurer.
4. Consider buying add-ons:
Cyber risk is difficult for insurers to quantify, leading to more customized policies than non-cyber policies. One must consider buying add-ons for complete cybersecurity. Most people opt for personal payment card loss, which ensures protection against unauthorized transactions made online, including ATM Frauds.
Cyber insurance being a niche category, it is advisable to check the claim settlement ratio of the company and see whether the insurer is sufficiently equipped with forensic experts who will settle the claim.