Janardhan NWhat if one breach in your system opened the door to every single one of your clients?
That’s the reality IT and ITes companies live with every day. You’re the gateway to your clients’ most valuable assets – trade secrets, customer data, and intellectual property.
If a hacker gets in, they don’t just stop at you.
They move straight into your clients’ systems, leaving you with not only your own damages but also the legal, financial, and reputational costs for everyone connected to you.
The risks are only growing. Phishing and social engineering attacks are up 29% compared to last year. AI-driven phishing now makes up more than 65% of all attempts.
Even global giants like Microsoft, Salesforce, and Cloudflare have faced cyberattacks so far in 2025. If leaders at that scale can get hit, no business is safe.
For an industry that relies on digital tools, communication platforms, and supply chain systems, a single cyber incident can bring any company to its knees.
In this blog, we’ll explore how cyber insurance protects your business, your clients, and your reputation from the ever-growing cyber threat.
Mitigata – India’s Leading Cyber Insurance Service Provider
Ransomware attacks that can lock down entire systems, data breaches exposing sensitive client information, and multiple regulatory penalties are something that is a nightmare for every ITES leader.
Now, how are we helping you? We get the ITES world.
After serving 800+ businesses across India, we’ve seen it all. We understand your pain points because we’ve helped companies like yours navigate through cyber crises and emerge stronger.
We partner with India’s leading insurers, including HDFC ERGO, Bajaj Allianz, ICICI Lombard, and IFFCO Tokio, to offer a tailored cyber insurance policy for ITES companies at competitive market rates.
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With Mitigata, you get the best market pricing and fast claims—plus proactive defence through our free cyber risk console.
Benefits of Cyber Insurance for ITES Companies
Let’s face it: if you manage an ITES company, cyber risks are inevitable. Whether you manage software development, client data, or cloud operations, your company is constantly under threat. The following are the most common benefits of cyber insurance coverage for ITES companies:
Financial Loss Protection: A data breach or cyberattack can force you to pay major costs, such as fines, legal fees, data recovery expenses, and lost revenue due to company interruption. Cyber insurance helps cover these direct and indirect costs, avoiding a single incident from causing a major loss to your firm.
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Expert Incident Response and Forensics
When an attack occurs, you require immediate assistance from experts. With cyber insurance, you can access forensic experts and other specialists.
These professionals will help you mitigate the impact of the attack, identify its source, and navigate the complex recovery process.
Coverage for Business Interruption:
Even a small cyberattack can easily disrupt services, slow down operations, and result in an immense loss of revenue. Take the recent example of Jaguar Land Rover, where a small cyberattack froze their operations for more than a week.
Such cases can be avoided with cyber insurance, which helps cover lost revenue and maintain the operations of any organisation.
Protection Against Regulatory Fines and Legal Liability:
With strong data protection standards such as GDPR and CCPA, as well as India’s Digital Personal Data Protection Act, a data breach can result in high fines and legal action.
Cyber insurance for the ITES industry can cover the costs of penalties, legal fees, and any settlements that may result from a breach.
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Crisis Management and Reputation Control:
A cyberattack can severely damage your company’s reputation and client trust, critical in the ITES industry where trust is your currency. Many policies include coverage for public relations and crisis management services to help rebuild your brand’s image.
Support for Data Recovery and Restoration:
Beyond financial loss, a cyberattack can corrupt or destroy critical data and IT infrastructure – your source code, client databases, and development environments. Cyber insurance helps cover the costs of data recovery, system restoration, and replacement of damaged digital assets.
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Get insurance along with in-house tools for brand monitoring and phishing simulation because ITES resilience requires both proactive defence and fast recovery.
What Does Cyber Insurance Cover for ITES Companies?
When you’re shopping for cyber insurance as an ITES company, you need to understand exactly what you’re getting. The coverage is typically divided into first-party and third-party coverages, both of which are important for your business.
First-party coverages
- Business interruption Costs: When your development environment goes down or your cloud services are compromised, you’re losing money every hour. Cyber insurance for the ITES industry compensates for lost revenue and extra expenses to maintain operations.
- Data Recovery and Restoration Costs: Imagine losing your entire code repository or client databases. Your insurance covers the technical experts needed to recover data from backups, rebuild corrupted systems, and restore your development environments. We’ve seen cases where data recovery alone costs ₹50 lakhs or more.
- Cyber extortion: Ransomware groups specifically target ITES companies because they know how dependent you are on your systems. Your policy covers ransom payments (where legally permissible), but more importantly, it covers the negotiation process and the investigation to determine if paying is even necessary.
Confused between so many insurance providers? Check out these top cyber insurance companies and their comparison in this guide.
Third-party coverages
- Legal Costs: if client data is breached, you’re facing lawsuits not just from the clients but potentially from their customers, too. Your insurance covers defence costs, settlements, and judgments.
- Errors and omissions liability: In cyberattack situations, where a cyber incident leads to failure in your service delivery. If a DDoS attack prevents you from delivering a critical software update on time, it can cause significant losses for your client.
- Regulatory fines and penalties: Many cyber insurance policies for IT service companies now cover GDPR fines, and some even cover regulatory investigations under India’s proposed Personal Data Protection Bill.
What Cyber Insurance Does Not Cover
Understanding the exclusions is just as important as knowing what’s covered, especially in the ITES space where the lines can get blurry. Here are the most common exclusions for ITES companies:
Intentional Acts and Criminal Activity: If someone in your organisation intentionally causes a breach or if you’re involved in fraudulent activities, cyber insurance for IT service companies won’t help in this. This includes situations where employees knowingly violate security protocols or engage in unauthorised activities.
Infrastructure Failures: If your servers crash due to poor maintenance, hardware failure, or simple wear and tear, that’s not a cyber incident – that’s a business operations issue. Your cyber policy won’t cover such costs.
Intellectual Property Theft: This is particularly challenging for ITES companies, where your source code and proprietary algorithms are your most valuable assets. If a competitor steals your code through a cyber attack, the theft itself might not be covered under a basic cyber policy.
Acts of War and Terrorism: Nation-state attacks are becoming increasingly common. Some policies now have specific exclusions for attacks attributed to certain countries or government-backed groups.
The silent clause of cyber insurance war exclusion is enough to put your business at risk. Check out this blog to learn how this exclusion can impact you.
Prior known incidents: If you knew about a security vulnerability or ongoing attack before you bought the policy, any resulting damage won’t be covered. This is why it’s important to purchase coverage before you need it, not after you’ve already identified threats.
Conclusion
So far, you must have understood how cyber insurance for for ITES industry isn’t just added expense – it’s an essential investment of your company for the future.
Remember, cyber insurance works best as part of a comprehensive security strategy, not as a replacement for good security practices. The goal is to never need to use your policy, but to have robust protection when prevention isn’t enough.
With Mitigata, you get access to a team of experts specialising in helping companies navigate the complex world of cyber insurance without compromising on the coverage.
Contact Mitigata today and protect your ITES company with the right cyber insurance coverage.
