Mumbai, April 20: Cyberattacks have become sophisticated and hard to escape. The surge in data breaches has caused companies to lose valuable client information and suffer financial losses. Cyber insurance helps businesses reduce the risk and financial losses resulting from cyberattacks, data breaches and other cyber incidents. 

Cyber Insurance is a specially designed insurance product that helps businesses mitigate the risks when they are attacked by cybercriminals. It becomes useful after a data breach or a cyberattack as it helps online businesses protect against financial losses affecting governance, IT infrastructure, information policy, and more. Traditional insurance products do not cover these risks. Online Booking Scams in India: Centre Warns Public About Fake Pilgrim and Tourist Portals Using Deceptive Websites, Social Media Pages and Paid Ads.

What Is Cyber Insurance? Why Is It Important for Businesses Against Financial Losses?

Cyber Insurance is also known as cybersecurity insurance or cyber liability insurance. It is a contract purchased by any business to protect itself against future cyberattacks or data breaches that could lead to financial losses. Cyber insurance is important because the frequency and intensity of the hackers to breach data and attack systems have become sophisticated.  Cyber criminals access the system and steal data without the knowledge of individuals and companies.

Cyber risks are dynamic, and therefore, the options offered in cybersecurity policies change over time. Policymakers have limited time to formulate risk models to come up with insurance policy coverages, premiums, and rates for a business. Taking cybersecurity insurance helps the company repair its damaged system, bear legal costs, and also cover data recovery. iPhone 16e Becomes Best-Selling Apple Smartphone Despite Criticism Over Design and Price: Report,

Cyber Insurance Causes Ransomware Demand to Increase?

According to a report by Tech Radar, ransomware operators would demand more if they detected cybersecurity insurance. The report said new research by Dutch police offer Tom Meurs while working on PhD thesis revealed this new fact. Tom Meurs reportedly studied 453 ransomware attacks from 2019-2021 and discovered that ransom demand was increased by 2.8x factor if the cyber criminals found that the victim had insurance for such attacks. The report said, "... but if they also manage to steal sensitive data in the process, the ransom demand is increased 5.5 times."

(The above story first appeared on LatestLY on Apr 20, 2025 03:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).