Cyber Security Insurance and Boards
07 Jan 2021
How to protect against cyber threats and mitigate through insurance Cyber risk is a risk of financial loss, business disruption or damage to the reputation of the company resulting from the failure of its information technology / data security and data loss prevention systems. Cyber risk breach could happen in a variety of ways, including:Deliberate and sometimes involuntary breaches to gain access to information systems. Unintentional or accidental breaches of security.
Operational risks factors such as poor system integrity cyber liability insurance helps an organization mitigate the financial loss to business due to data breach or any cyber risk. It also covers for legal costs and damages resulting from the data breach. Also called as “Cyber Security insurance” or “Cyber risk Insurance” this is an insurance policy that pays for both first and third party losses as a result of a computer-based attack or malfunction of information technology systems of any business. India, has now become a major victim of cybersecurity attacks. According to a Cyberplaces Foundation report (CPF), startups and SMEs in India are the most vulnerable segment when it comes to cyberattacks. Some of the recent attacks that happened in the Indian startup ecosystem in-clude: WhiteHat Jr - On November 25, the Quint quoted a security researcher who reported the bug to WhiteHat Jr, who said, “ personal data of over 2.80 lakh students including names of their parents were lying exposed due to a vulnerability on the company's server-side.”BigBasket admitted that a data breach had happened where almost 20 mil-lion users’ data were compromised.
The blog by cybersecurity research firm Cyble said that their research team found the database of BigBasket being sold for over $40,000 in the cyber-crime market. Dunzo, the delivery startup reported a data breach in July 2020. The startup was working with a third-party whose servers were compromised. Unacademy, another edtech startup suffered a data breach in January, 2020. As per the report by security research firm Cyble, email data of about 11 million users has been compromised. How is cyber insurance premium calculated? Cyber insurance policy premiums are “not one size fits all”, as premiums are factored on a company's industry, services, type of sensitive data stored/collected/processed, total number of PII/PHI records, data risks and exposures, computer and network security, privacy policies and procedures and annual gross revenue If you need any assistance as Director to know more on the cyber Security Aspects of your business, your Boards, get in touch with team MentorMyBoard at email@example.com