The advent of internet has helped the business world in a great manner. Internet has made several tasks and activities a lot easier in comparison to the early ages. Apart from multitude of benefits, internet has also exposed the business world to a whole lot of risks. Loss of valuable information and data is one of the greatest losses to almost any business in the present day age. According to a recent survey, more than 85% of business houses have suffered great losses mainly due to the breach in company's data security. In the year 2005, according to the percentage count of Federal Bureau of Investigation, more than 60% companies suffered a good amount of monetary loss due to the illicit activities of computer hackers.
As a result, the need for complete internet security gave rise to the cyber insurance products. Just like any other insurance product, cyber insurance provides cover for the losses occurring due to hacking, loss of data, defiance of service attacks and the like. The role of cyber insurance comes into play when the internet security products like virus protection software's or anti spam systems fail in providing foolproof cover. This coverage takes care of all the monetary expenses spent in getting the organization back on track.
Coverage Offered The cyber cover provides full coverage for the liabilities arising out of web media, web content, private customer data, computer system and website based threats, server security breach and much more. Any kind of loss occurring because of such events is duly covered under this type of indemnity cover. Even the money expended in getting the business working back to normal is covered in such type of protective covers.
Allied Benefits The first and the foremost benefit of this type of cover is that in the event of security breach, it will act as a complete source of funding against any kind of losses and getting the business back to normal working. The second probable benefit of such indemnity cover is that the risk is equally dispersed among several business houses by the way of charging premiums. The amount of premium charged from the companies mainly depends upon the risk faced by them. Lastly, the insurance companies indirectly encourage the adoption of superior internet security measures for the safety of various company assets including the customer information and other data.
So, this was in-detail analysis of the cyber insurance, available to the business houses as an active internet security measure.
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