Janardhan NAccording to global experts, cyber events are now the main source for business disruption, outranking even the most severe natural disasters.
Many business owners believe a robust IT team and modern security technologies are sufficient to protect against cyber threats.
But even the biggest brands like Marks & Spencer, Jaguar Land Rover, H&M, Adidas, and WestJet Airlines were targeted by cyberattacks this year – despite having some of the best security systems in place.
Cyberattacks are not slowing down. In India alone, there were over 2.04 million cyber incidents last year, with the average cost of a data breach hitting $4.88 million.
Such a loss can bring down a company, especially if no backup plan is in place.
If your company is ever targeted, cyber insurance risk management becomes the difference between a rapid recovery and a complete shutdown.
It assists you in reducing the financial, legal, and reputational damage that can occur from a cyberattack.
Mitigata: Your Trusted Partner for Cyber Risk Insurance
When it comes to protecting your business from cyber threats, selecting the right insurance partner matters just as much as the coverage you choose.
At Mitigata, we’ve built our reputation on doing things differently.
We don’t just step in after an incident occurs – we work alongside you to stop threats before they impact your operations.
Our 100% client retention rate reflects the confidence businesses place in our approach.
Cyber Risk Insurance Policy Starting at Just ₹49,000/ Year*
With Mitigata, you get the best market pricing and fast claims—plus proactive defence through our free cyber risk console.
Why Do 800+ Companies Trust Mitigata?
Proven Expertise: More than 800 companies across 25+ sectors trust us to protect their operations. From logistics firms to diverse enterprises, we understand the unique cyber risks your business faces.
Proactive Protection Through Mitigata Console: You get exclusive access to our Mitigata Console – a powerful platform that puts prevention in your hands. Stay ahead of phishing attacks by tracking your digital vulnerabilities and receiving immediate alerts on potential threats.
Strategic Partnerships: We have developed a strong working relationship with some of India’s leading insurance providers to obtain comprehensive coverage, along with dependable service when you need it most.
Best Value Pricing: Our network of partners and experience in the industry enable us to offer you coverage with competitive pricing, backed by our coverage plan.
What Is a Cyber Risk Insurance Policy?
Cyber risk insurance coverage offers protection for a range of events related to cyber attacks, data breaches and other associated cyber incidents.
Cyber attacks and breaches are increasingly common in today’s world and can cause immeasurable financial harm.
Cyber liability insurance assists an organisation in responding, mitigating, and dealing with the financial costs stemming from a cyber event.
For example, suppose your company experiences a data breach in which hackers steal your customers’ personal information. Cyber risk insurance helps with costs related to customer notification, legal procedures and public relations.
If your organisation does not experience any cyber attack, it instead receives a ransomware demand in which hackers lock access to your entire system and demand payment to unlock it.
In such situations, cyber risk insurance with incident response will cover both the ransom and any costs associated with recovering the systems.
In 2024, 75% of organisations have experienced a SaaS security incident. Read this expertly created guide highlighting the importance of cyber insurance for SAAScompanies.
How to Choose Cyber Insurance That Fits Your Business Needs
Choosing the right cyber insurance is not about finding the cheapest policies. It is about finding coverage that provides comprehensive protection for your business against real threats. Here is a useful guide for it:
Step 1: Understand Your Business Risk Profile
Before comparing cyber insurance policies, you need to have a clear understanding of your digital vulnerabilities. Try answering these fundamental questions:
- What is the regulatory environment for your industry? (Healthcare, finance, and retail have high compliance requirements)
- Have you had any security incidents in the past? (A past security incident is often a red flag)
A logistics company storing driver’s information will have different risks than a SaaS start-up with enterprise clients. Understanding your risks protects you from overpaying for coverage you do not need.
Step 2: Match Coverage to Your Industry
Different sectors need different protection levels:
- E-commerce and retail: Prioritise coverage for PCI breaches, point-of-sale system failures, and protection against customer data theft.
- Manufacturing: Look for coverage related to operational technology, supply chain disruptions, and industrial control system attacks.
- Healthcare: Make sure the coverage includes penalties for violations of HIPAA (Health Insurance Portability and Accountability Act), costs of breaches to patient data, and theft of medical records.
- Professional Services: Coverage needs to focus on the theft of intellectual property, breaches of customer data, and errors and omissions associated with cyber events.
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Our streamlined claims process ensures fast resolution, supported by experts who understand your business risks and compliance needs.
Step 3: Check Policy Limits and Exclusions
The effectiveness of a cyber risk insurance policy depends on the following factors
Coverage Limits: A ₹50 lakh policy may cover small incidents, but a major incident that could affect thousands of customers requires coverage of ₹2-3 crores. Always analyse the worst-case scenarios depending on your business.
Common Exclusions: Most policies exclude items such as social engineering fraud, insider threats, prior known vulnerabilities, and acts of war. Hence, choose your policy wisely after knowing all the exclusions.
Sub-Limits: Some insurers cap specific expenses. For example, your policy might have a ₹1 crore limit but only a ₹10 lakh limit for forensic investigations.
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.
Step 4: Assess Insurer Support Services
The best policies offer more than just money. You should always look for these features while selecting an insurance policy.
- 24/7 incident response helpline
- Access to cybersecurity forensic experts
- Legal advisory services specialised in data breaches
- PR and crisis communication support
- Vendor relationships for quick response (IT recovery, legal counsel)
Step 5: Compare and Negotiate
Compare these features of different insurers:
- Deductible amounts (higher deductibles lower premiums but increase out-of-pocket costs)
- Claim settlement track record (ask for references)
- Provider’s expertise in your industry
- Additional risk management tools offered (security assessments, employee training)
Don’t hesitate to negotiate. If you have strong cybersecurity measures in place (firewalls, SIEM, regular backups), insurers may offer better rates.
5 Things to Compare in Cyber Insurance Policies Before You Buy
Before you sign a contract, compare cyber insurance policies carefully. Here are five points to check:
What does it cover?
Pay close attention to what is covered in the policy. Does it only cover direct losses or does it also include third-party liability if your client data has been breached?
Example:
Policy A only covers your costs to recover your own systems after a ransomware attack. Policy B covers not only your system costs, but it also covers lawsuits from clients whose data was breached in your systems. Here, policy B covers much more cyber liability insurance.
Incident Response Services
Many cyber risk insurance coverage companies provide incident response services to place you in touch with information technology forensic experts, crisis communication teams, and negotiators during a cyberattack. This added coverage can save you time and expense for the business.
Example:
After a phishing attack, a business with cyber risk insurance that includes incident response can instantly contact the insurance company and connect with the appropriate specialists to investigate the breach and stop further intrusion.
Without this incident response service, the business would have to hire the same experts on their own at a very high cost.
Cyber insurance backed by data, not false marketing promises
Mitigata offers proven expertise, trusted insurer partnerships, and 24/7 support that delivers real business protection when you need it most.
Legal and Regulatory Support
A cyber incident typically results in lawsuits and fines for violating data privacy laws surrounding the compromised data. Cyber liability insurance with legal and regulatory support means the insurer will cover attorney fees and regulatory fines resulting from data loss.
Example:
A healthcare clinic has a data breach that exposes sensitive patient records. Regulatory agencies impose fines, and patients file lawsuits. The cyber risk insurance policy with legal support covers expenses associated with Attorney fees, fines, and all ongoing litigation.
Discover key strategies to identify and mitigate cyber risks in healthcare organisations
Exclusions and Limitations
Insurance policies do not cover everything. Some exclude insider threat and unpatched software, and do not adhere to best security practices. You should always read the exclusions carefully.
Example:
A retailer uses outdated software that may have security patches, which hackers exploit. If the insurance policy excludes the loss of using outdated software, then the company has to bear the whole cost.
Red Flags to Look Out for in Providers and Policy Terms
When reviewing different insurance providers, be cautious of these signs indicating inadequate policy coverage.
For Providers:
- No track record in your specific industry or sector
- Unable to provide claim settlement case studies or references
- Extremely low premiums compared to market rates (often indicate inadequate coverage)
- Poor customer reviews or complaints about claim denials
- Limited or no 24/7 support during cyber incidents
- Pushy sales tactics without proper risk assessment
For Policies:
- Vague or ambiguous coverage language that’s open to interpretation
- An extensive exclusion list that eliminates common cyber threats (social engineering, ransomware, insider threats)
- Extremely high deductibles that make claims impractical
- Sub-limits that significantly reduce advertised coverage amounts
- Retroactive date clauses that exclude incidents from before policy inception
- Mandatory security requirements you can’t realistically meet
- No coverage for business interruption or revenue loss
- Waiting periods that delay coverage activation
- Automatic policy cancellation clauses after the first claim
Learn how to smoothly handle a cyber insurance claim with Mitigata’s step-by-step guide
Conclusion
Cyber threats are not going away, but you don’t have to face them alone if you have the right insurance partner. The important part of cyber risk insurance isn’t just providing a response after an attack, but providing help to prevent an attack before it happens.
Mitigata has assisted more than 800 businesses in over 25 industries in protecting against cyber risks.
Are you ready to protect your business against cyber risk? Get a customised cyber insurance quote today.
