areena gDid you know that more than 70% of businesses in India reported a cyber event in 2024, but most are still just insured under a standard business interruption policy?
A basic policy provides protection against physical damage to your business caused by fire or flood, which conventional coverage standards inherently allow. But it does not provide much protection against threats arising from cyber threats.
In the event of a ransomware attack, a data breach, or a malicious attack, you can stop operations and lose revenue and reputation to a risk that traditional interruption coverage will not address.
In this blog, we discuss how cyber insurance can supplement general business extension coverage to protect your business in a cyber world.
Mitigata: India’s Leading Cyber Insurance Provider
Cyber threats are rising, but the right insurance partner can make all the difference. 800+ companies rely on Mitigata not just for coverage, but for proactive cyber defence.
Why Businesses Trust Mitigata:
Mitigata is the only company in India that offers Cyber Insurance with exclusive, free access to the Mitigata Console. A comprehensive platform that gives complete visibility into your organisation’s digital risk. With it, you can:
- Spot system and network weaknesses before they’re exploited.
- Train your team using realistic phishing simulations.
- Check the dark web for stolen credentials or sensitive data.
- Track fake domains, phishing sites, and unseen cyber threats.
Cyber Risk Insurance Starting at Just ₹95,000/Year*
Save more with Mitigata and get exclusive tools to monitor your digital footprint proactively.
Our Promise to Clients:
- 24/7 Support: Access expert guidance whenever you need it.
- Transparent Pricing: Competitive rates with no hidden costs.
- Fast Claims: Quick approval and recovery to keep your business running smoothly.
What is Cyber Insurance?
Cyber insurance is a type of coverage designed to protect businesses from financial losses caused by cyber incidents such as data breaches, ransomware attacks, and other online threats.
As businesses become more dependent on technology and store valuable information online, this insurance provides crucial support when cyberattacks occur.
For example, if a company falls victim to a ransomware attack, cyber insurance can cover the cost of paying the ransom, as well as recovery expenses like system restoration and data recovery.
Know more about cyber insurance and it’s coverage in this expertly curated guide.
What Is Business Interruption Coverage?
When an event disrupts your operations due to physical damage, business interruption coverage provides compensation for lost revenue. For example, if your office building is damaged by a fire, this coverage will pay for lost income while the property is repaired.
The catch, however, is that this coverage typically does not include cyber-related losses. A ransomware attack or system outage can cause just as much interruption to your business as a fire, and without cyber insurance, the financial repercussions can be disastrous.
Learn how cyber insurance can help SaaS businesses protect sensitive data and ensure uninterrupted service in the face of cyber risks.
Why You Should Get Cyber Insurance Coverage Instead of Just Business Interruption Coverage
Here’s a comparison of what aspects are covered in Cyber Insurance and Business Interruption coverage:
| Feature | Cyber Insurance | Business Interruption Coverage |
|---|---|---|
| Data Breaches & Cyber-Attacks | ✔ | ✖ |
| Legal & Regulatory Expenses | ✔ | ✖ |
| Notification Costs | ✔ | ✖ |
| Public Relations & Crisis Management | ✔ | ✖ |
| Business Interruption Losses due to Cyber Events | ✔ | ✖ |
| Cyber Extortion / Ransom Payments | ✔ | ✖ |
| Business Interruption due to Physical Damage (Fire, Flood, etc.) | ✖ | ✔ |
The Only Cyber Insurance Partner You'll Ever Need
We go beyond coverage with our console-driven insights, 24/7 support, and top-tier protection at unbeatable pricing.
What’s Not Covered Under Cyber Insurance
Understanding what is excluded helps businesses manage expectations and implement additional safeguards for comprehensive protection. The common exclusions of a cyber insurance policy are:
- Prior Known Incidents – Any event or breach known before the policy began.
- Intentional Acts or Fraudulent Activities – Damages caused by deliberate or fraudulent acts by employees or third parties.
- Infrastructure Failures – Failures not caused by a cyber event, such as power outages or hardware malfunctions.
Confused between so many insurance providers? Check out these top cyber insurance companies and their comparison in this guide.
Conclusion
Traditional business interruption coverage protects against physical damage but not against cyber risks
Cyber insurance helps fill these gaps by covering financial losses, legal and regulatory liabilities, and business downtime caused by digital threats.
To ensure your business is resilient and prepared for contemporary challenges, supplement your organisation’s IT security practices with sufficient levels of cyber insurance.
Are you ready to get started? Contact us for a personalised quote today.
akshit k