Worried over the high liability cost caused by online data theft and cyber crime, the companies are demanding cyber liability insurance. The incidents of online data theft and cyber crime are on the increase in India, so corporates are not only taking efforts to tighten online security, but are also looking to take precautionary measures to keep the liability in check.
“Cyber liability can be covered under our professional indemnity policy as an extension. Globally, as well as in India, we are seeing that information technology enabled service firms have an appetite for these policies,” said Gisha George, head-liability insurance, Bajaj Allianz General Insurance. She added this would cover third party claims arising due to negligent transmission of a computer virus, misrepresentation, defamation, confidentiality breach, intellectual property infringement and related exposures.
Cyber crimes caused by the insured’s employees also get covered under the policy but would exclude the actual perpetrator. Sanjay Datta, chief-underwriting and claims, ICICI Lombard General Insurance said that cyber liability is a new age cover,which can be offered as an extension under errors and omissions policy or as a standalone cyber liability policy. “Presently, the enquiries are coming mainly from the IT sector. But soon other sectors such as banking, financial services and insurance, hospitals, travel companies, educational institutes, retail majors will also follow suit,” said Datta.
