Cyber Insurance provides financial protection against losses arising from cyber incidents such as data breaches, ransomware attacks, malware infections, and network security failures. The policy typically covers first-party losses, including data restoration costs, business interruption losses, and incident response expenses, as well as third-party liabilities arising from claims related to unauthorised access, disclosure, or loss of data.
In India, cyber insurance plays an important role in organisational risk management and regulatory compliance under the Information Technology Act, 2000, the Digital Personal Data Protection (DPDP) Act, 2023, and the DPDP Rules, 2025. Coverage may support obligations relating to breach notification, data fiduciary responsibilities, and regulatory investigations or response costs, subject to the policy's terms, conditions, limits, and exclusions.
The Policy has provision to extend cover for Ransomware & cyber extortion expenses, regulatory defence costs and penalties, Media & intellectual property liability, Privacy breach notification and credit monitoring costs.
