Understanding Cyber Protection and Cyber Insurance

18th December 2023
6 Mins of Read

In a world where the Internet has essentially created an alternate space for people to work, study, play  and fulfil their duties, protecting oneself in the digital or virtual space, just like in a Physical space(by installing  security systems and insuring oneself in a situation of mishap), becomes absolutely necessary. In the present times there exist various mechanisms which are specially designed to provide a solution and cater to an individual and an organization’s requirements of security in this digital space. These solutions include ‘Cyber Insurance’ policies and ‘Cyber Protection’ policies. While both these solutions objectively cater to one’s safety and the subsequent consequences with respect to same, there does lie some objective differences in both of these solutions.

Cyber Protection Policies and Solutions

Acronis has been a global leader in providing cybersecurity solutions, and they have devised a solution or rather certain Principles which define Cyber Protection. An Implementation of policies covering all of these principles will provide an all-around solution for implementing “Cyber Protection” for an individual or an organisation. Following are the principles or vectors for providing modern cyber protection:

1. Safety: Making sure a Reliable copy of your data is available at all times. This would mean that there needs to be a comprehensive and elaborate policy on deciding upon a data storage solution which suits one’s requirement and budget.

2. Accessibility: Making sure that data is readily available from anywhere at all times. Therefore, providing a secure and fast cloud computing solution for one’s organisation is also important.

3. Privacy: Controlling who has the access to the data and to whom it is visible is also important as it could have serious financial implications and could often lead to statuary violations as well.

4. Authenticity and Security: making sure the data stored is authentic and safe at all times. This would mean systematic and institutional wise cybersecurity measures and policies which also take in the account the possibility of a compromise due to social engineering. If an institution creates or employs someone to implement policies and measures based upon these policies, it would act as a preventive and proactive measure to safeguard the organisation from any potential threat and would minimize the consequences of any mishappening or incident which potentially could lead to a loss of a lot of money. 

Cyber Insurance solutions

A Cyber Insurance policy will ‘Insure’ an organization in case of any Data Leak or incident which compromised the entire Technical Infrastructure of one’s organization and will also often provide the resources required to fight any contractual or statutory liability. Moreover, depending upon the choice of policy, the following features are usually present in a policy providing cyber insurance

1. Covers the financial loss incurred in case of a cyber-attack or a phishing scam.

2. Covers the expenses incurred in prosecuting or defending a case, which arises after an incident, which includes Legal Fees, Consultation fees, fees for rebuilding destroyed infrastructure etc. 

3. Covers the Financial, contractual and statuary liabilities arising post the attack or incident.

4. The Premium for the policy is often decided based on a complete assessment of the IT and network infrastructure of the organisation.  Getting Cyber insurance for one’s organisation or oneself is a solution which one should consider  after  implementing a comprehensive Cyber Protection Regime, as the fruits or benefits of a Cyber Insurance are only availed post any incident and Hence can be termed a curative solution. Even the premium costs for such a policy are extremely high if one does not have a comprehensive and effective cyber protection policy. 

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