How Cyber Insurance Protects You From Malware Attacks

Learn about this shocking news: Just like Software-as-a-Service (SaaS), there is now a black market where hackers rent out malware tools and ransomware kits to others for a fee. This means even people with no coding skills can launch attacks. Therefore, businesses and individuals need to be vigilant and learn how to protect their systems from malware attacks.

For complete protection and for safeguarding your assets, purchase a cyber insurance policy from Bajaj General Insurance.

What is Malware and What Are Its Types?

The meaning of malware is malicious software. Any software or program that is created with malicious intent, that means software created to damage others’ devices or gain unauthorised access to your devices is malware. Malware can enter your device in many ways. Let us understand how and what are the types of malware.

1. Viruses

A computer virus is malware that spreads through infected files. When you click on a file that is infected, the virus activates and begins to replicate itself. It can delete or corrupt your data and slow down the entire system. Viruses spread through email attachments, file-sharing websites, or external drives.

2. Ransomware

Have you heard about the word ransom which means to demand money for release of a captive? Similarly, ransomware is a dangerous type of malware that locks your files. If you want access to your important files, it demands you pay a ransom amount. Ransomware spreads through phishing emails, or malicious links, or when you download fake software.

3. Spyware

Spyware secretly monitors your activities without your consent. You are not even aware that it is collecting personal information such as your passwords, banking details, and messages.
It can also record keystrokes (called keyloggers) to capture what you type.

4. Trojans

Suppose you receive a fake email that offers a “system update.” You install the app and it installs a Trojan that allows hackers to control your computer remotely. Thus, a Trojan horse performs harmful actions but disguises itself as a useful program.

5. Worms

Worms are different from viruses as they do not attach themselves to other files. They self-replicate and spread without any action, and they consume system resources and crash the entire network.

What is Cyber Insurance?

Cyber security insurance is a type of insurance policy that protects you from the dangers of the digital world; it provides compensation for losses caused by cyber incidents like malware attacks, data breaches, and online fraud. It can also help you in the repair of damaged systems and in the payment of legal expenses.

Thus, cyber security insurance or cyber protection insurance is useful for anyone who uses the internet regularly like individuals who use UPI and mobile banking, professionals accessing the digital world, small businesses and online sellers who receive online payments in the day-to-day course of business.

How Cyber Insurance Protects You From Malware Attacks?

Now that you have understood the meaning of cyber insurance, let us understand how cyber insurance coverage protects you from online threat:

1. It Pays To Restore Your Systems And Data

If malware damages your computers and deletes important files, cyber insurance pays for the recovery and repair of the data and system. The policy also pays for replacing computer hardware if it is damaged due to malware attack. Moreover, it also pays if you want to reinstall important software and configure system so that your business can resume its operations quickly.

2. It Covers the Costs Of Forensic Investigation

After a cyberattack, it is important to know how it happened. Cyber insurance can pay for digital forensics experts who investigate the attack. These experts find out how the malware entered your systems and what data was affected or stolen. Their investigation is very important to fix the weakness in your system and prevent future attacks.

3. Helps To Compensate For The Lost Income

A malware attack can shut down your operations for days or even weeks, and during that time, your business may not earn revenue but still has to pay fixed costs. Cyber insurance can help by compensating you for the income you lose when your business is stalled during the repair of the system. This support is important to stay stable financially.

4. Helps With Ransomware And Extortion Response

Cyber insurance policy may also cover the cost of hiring expert negotiators who deal directly with the criminals on your behalf when you face an incident where your systems are locked and ransom is demanded.

5. Covers Legal Costs And Third-Party Liability

If malware from your computer spreads to your clients, partners, or suppliers, they might sue your company for damages. In such situations, cyber insurance can protect you by paying for settlements and legal expenses.

6. Supports Prosecution And Legal Recourse

Sometimes, businesses want to take legal action against the hackers. Cyber insurance can help to cover the cost of hiring legal experts to build a case against the attackers.

Conclusion

In the fight against cyber crimes like malware and ransomware, staying vigilant and taking the essential steps to safeguard your assets is the first step. However, for overall protection, businesses and individuals must purchase cyber insurance coverage from Bajaj General Insurance so that any malware attack cannot ruin your data, nor your business.

FAQs

1. What is cyber insurance and how does it work?

Cyber insurance is a policy that protects you from online risks like malware attacks, phishing, or identity theft. It works by reimbursing your financial losses, covering legal fees, and helping you recover data or reputation.

2. Is malware covered under cyber insurance policies in India?

Yes, most cyber insurance policies include malware protection. They cover the cost of system repair, data recovery, and legal defence.

3. Can individuals buy cyber insurance or is it only for businesses?

Both individuals and businesses can buy cyber insurance. In fact, personal cyber insurance is now popular among working professionals, students, and online shoppers.

4. What’s the average cost of cyber insurance in India?

Plans can start from as low as ₹1 per day, depending on the coverage amount and add-ons. Premiums vary based on your risk level and protection needs.

5. Will cyber insurance cover losses due to phishing emails or UPI frauds?

Yes, many policies include protection against phishing and UPI fraud. However, check the terms to ensure it’s covered in your chosen plan.

6. Is cybersecurity insurance different from cyber protection software?

Yes. Cybersecurity software protects your device from attacks in real-time. Cyber insurance, on the other hand, helps you recover after an attack by covering financial and legal losses.

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***Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.