India ranked among the top 5 most-cyberattacked countries globally in 2023. Ransomware, data breaches and social engineering attacks are now targeting businesses of every size.
What Does Cyber Insurance Cover?
Data Breach Response
Covers forensic investigation costs, legal expenses, breach notification to affected customers and credit monitoring services.
Business Interruption
Compensates for lost revenue and additional expenses during the period your business is disrupted due to a cyber event.
Ransomware and Extortion
Covers ransom payments and the costs to restore systems after a ransomware attack. Also includes negotiator fees.
Third-Party Liability
If your data breach harms customers or partners, cyber liability covers legal defense costs and damages awarded.
Social Engineering / Fraud
Coverage for financial losses due to phishing attacks, business email compromise (BEC) and social engineering fraud.
Who Needs Cyber Insurance?
Every business that:
- Stores customer data (PII, payment information)
- Relies on digital systems for operations
- Conducts online transactions
- Has employees using email and the internet
This includes SMEs, not just large enterprises. 60% of cyberattacks target small and medium businesses.
How to Calculate Your Coverage Needs
Consider:
- Revenue dependent on digital systems
- Cost of data breach response (typically ₹500–2000 per affected record)
- Potential regulatory fines under DPDP Act 2023
- Business interruption losses per day of downtime
What is NOT Covered
- Prior acts (incidents before the policy start date)
- Intentional acts by employees
- Physical damage to hardware
- Losses due to poor security hygiene (check exclusions carefully)
VIRAM offers tailored cyber insurance policies for startups, SMEs and large enterprises. Get in touch for a cyber risk assessment.