Guest Talk

Mitigating Cyber Security Threats with Insurance

Tejas Jain Bimakavach

Business insurance is the mantra of peace and security for entrepreneurs. It adds credibility to the business, helps you attract top talent and raise funds. It reduces your risks and at the same time helps you grow rapidly.

Tejas Jain, Founder, BimaKavach

Increasing risk in the economic environment makes it more difficult to prevent fraud and other forms of economic crime. As organizations move quickly to adapt, bad actors see this as an opportunity to take advantage of weaknesses that may open in fraud defenses.

Fraud is an ongoing challenge for many businesses. Several years of anti-fraud policies, training, internal controls, and monitoring have helped businesses to fight internally driven fraud. New threats are popping up constantly, though. Organizations are doing the hard work of enhancing their technical capabilities and implementing stronger internal controls. Specifically, they have policies, procedures, and trainings in place to encourage employees to act responsibly.

Now the questions are:

  • Can the advanced technologies be deployed to control various kinds of internet-based risks?
  • Have enterprises created appropriate policies and incentives that can cater to today’s rapidly evolving economy?

The frequency of data breaches has increased, so companies should take all possible steps to protect the personal information of their customers. The major data breaches will challenge the knowledge-based authentication strategies that organizations have invested in to protect against fraudsters. The trend of law-abiding people joining up with criminal groups is also on the rise.

In the recent case of ransomware attack on the server used at All India Institute of Medical Sciences (AIIMS)-Delhi was down for at least 9 hours, adversely affecting the center’s outpatient department (OPD) and sample collection services. With an increase in efficacy, cyber-criminals are extending their reach towards enhanced sophistication every day, making it more eminent to protect your business from such threats.

Amid this situation, we felt the need of customized cyber insurance policies and redesigning the cyber insurance product to provide maximum benefit to policy holders. Cyber insurance is a great way to safeguard your company in the event of a data breach or other cybercrimes. When you purchase cyber insurance, you are protecting both yourself and your clients from first- and third-party losses. Cyber coverage also includes services that reduce the impact of lawsuits and liabilities on your business.

A company that operates with internet-connected devices on premises, will always be at internet-based risks. A data or cyber breach is unpredictable and quite often unavoidable, even with the use of adequate technology. Cyber liability insurance could be the best bet to protect businesses from losses or damages incurred due to cyber-attacks and data breaches. But make a wise decision while choosing an insurance company.

Business insurance is the mantra of peace and security for entrepreneurs. It adds credibility to the business, helps you attract top talent and raise funds. It reduces your risks and at the same time helps you grow rapidly. The cyber insurance policy covers investigation expenses, data restoration costs and crisis management fees. You do not have to worry much about the losses incurred after phishing, hacking and 3rd party liabilities. The time has come to treat a cyber insurance as a must-have safety measure and not just an afterthought to protect their business.

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