ICICI Lombard Cyber Insurance: Protect Your Business

“In 2023, a global survey reported that the average cost of a data breach reached an all-time high of $4.45 million. With cyber incidents on the rise, securing your business against these threats is no longer an option but a necessity.” The digital era has brought about incredible advancements and opportunities for businesses, but it has also introduced a significant array of cyber risks. From small startups to large corporations, every business that operates online or handles sensitive data is a potential target for cybercriminals. ICICI Lombard’s Cyber Insurance Policy is designed to safeguard commercial enterprises against a wide range of first and third-party liabilities stemming from cyber exposures associated with e-business, the internet, networks, and information assets.

Understanding Cyber Risks

The rise of digital platforms and technology means that companies now handle vast amounts of private and confidential information. As a result, they have a responsibility to keep this data secure. The risk of cyber threats is steadily increasing, with security and data breaches affecting millions of records annually. Reports of such breaches continue to rise dramatically, with the introduction of viruses and unauthorized access being well-known examples.

Coverage Offered by ICICI Lombard’s Cyber Insurance

ICICI Lombard’s Cyber Insurance Policy offers comprehensive coverage to protect businesses from a variety of cyber risks. Below are the key areas of coverage provided:

First-Party Coverage

1. E-Theft Loss: Protection against losses resulting from the fraudulent input of data into a computer system or network, leading to unauthorized transfer of funds or property.
2. E-Communication Loss: Covers losses incurred due to a customer transferring funds or property based on fraudulent communication for which the insured business is held legally liable.
3. E-Threat Loss: Includes the cost of professional negotiators and payments made or property surrendered as extortion payments.
4. E-Vandalism Loss: Protection against losses caused by acts of vandalism, including those committed by employees.
5. E-Business Interruption: Coverage for extra expenses incurred due to business interruption caused by cyber incidents.
6. Privacy Notification Expenses: Covers the cost of credit monitoring services or similar services for affected customers, subject to a sub-limit.
7. Crisis Expenses: Includes the cost of public relations consultants to manage the crisis, subject to a sub-limit.

Third-Party Liability

1. Disclosure Liability: Coverage for customer claims resulting from system security failures that lead to unauthorized access or dissemination of private information on the Internet.
2. Content Liability: Protection against claims for intellectual property, trademark, and copyright infringement.
3. Reputational Liability: Covers claims alleging disparagement of products or services, libel, slander, defamation, and invasion of privacy.
4. Conduit Liability: Includes claims arising from system security failures that result in harm to third-party systems.
5. Impaired Access Liability: Coverage for claims due to system security failures that result in systems being unavailable to customers.
6. Defense Costs: Cover for costs incurred in defending any claim brought by a government agency, licensing, or regulatory organization. This includes defense costs in advance of the final disposition of any cyber liability claim and within 30 days of receipt of the invoice for such costs.

Exclusions

While ICICI Lombard’s Cyber Insurance Policy provides extensive coverage, certain scenarios are excluded:

1. Dishonest or Improper Conduct: Excludes coverage for fraudulent acts or willful violations of any law or regulation by an insured.
2. Bodily Injury/Property Damage: Excludes bodily injury, sickness, disease, death of any person, or damage to any tangible property.
3. Mechanical Failures: Excludes coverage for mechanical failure, gradual deterioration, electric disturbances, media failure or breakdown, or any malfunction.

Key Benefits of ICICI Lombard’s Cyber Insurance

1. Combined Coverage: Offers the combined benefit of third-party (cyber liability) and first-party (cybercrime expense) coverage.
2. Broad Definitions: Provides broad definitions of “computer” and “system” to address enterprise-wide network exposure, including laptops, disk drives, backup tapes, and mobile devices.
3. No Employee Exclusion: There is no exclusion for fraudulent or malicious acts committed by employees.
4. Outsourced Data Coverage: Disclosure liability coverage extends to outsourced data processing and data storage services.
5. Privacy Notification Expenses: Coverage is triggered without a requirement for a claim or a regulatory mandate for notification.
6. Cyber Hacking and Attack Coverage: Provides coverage for incidents of cyber hacking and cyber attacks.

About ICICI Lombard General Insurance

ICICI Lombard General Insurance Company is a prominent name in the insurance sector, offering a wide range of insurance products and services. It is a leading private sector general insurance company in India, providing solutions tailored to the diverse needs of its customers. The Cyber Insurance Policy is a testament to its dedication to protecting businesses in the digital age.

Conclusion

ICICI Lombard offers a Cyber Insurance Policy with comprehensive coverage, addressing first and third-party liabilities, and ensuring businesses are well-protected against various cyber risks. By choosing ICICI Lombard, businesses can safeguard their digital assets and maintain their reputation in the market.

Mitigata: Your Partner in Cyber Journey

For businesses looking for even more comprehensive coverage and expertise, consider partnering with Mitigata. With our advanced risk quantification tools and full-stack cyber support, we ensure that your business is protected from every angle.

FAQs

1. What types of businesses need cyber insurance? 

Any business that relies on digital operations or handles private and confidential information should consider cyber insurance. This includes e-commerce companies, financial institutions, healthcare providers, and more.

2. How does ICICI Lombard’s Cyber Insurance Policy handle data breaches?

The policy covers privacy notification expenses, crisis management costs, and third-party liabilities arising from data breaches.

3. Does the policy cover losses due to employee actions? 

Yes, the policy covers e-vandalism losses caused by employees and does not exclude fraudulent or malicious acts by employees.

4. What is included in the defense costs coverage? 

The policy includes coverage for defense costs incurred in defending claims brought by government agencies, licensing, or regulatory organizations.

5. Can the policy cover cyber hacking incidents?

 Yes, the policy provides coverage for cyber hacking and cyber attack incidents.

By investing in ICICI Lombard’s Cyber Insurance Policy, your business can be well-prepared to face the financial and reputational challenges posed by cyber threats. For additional peace of mind and superior risk management, Mitigata is here to support your cyber resilience journey.

For more detailed information, you can visit ICICI Lombard’s Cyber Insurance page.