Suvidha Insurance Broking Pvt. Ltd. is an IRDA approved Insurance Broker (Direct General) (Licence No. DB-218/03; 264) for non-life sectors of insurance authorized to provide risk management and other insurance related services.

Get In Touch

Email insurance@suvidhainsurance.com
Phone +91 89103 20845
Location 174, Chittaranjan Avenue, 5th Floor, Kolkata-700 007

Crime Vs Cyber Insurance

Home Crime Vs Cyber Insurance

Crime Vs Cyber Insurance

Cyber Risk Insurance –

Also referred to as cybersecurity insurance or data breach insurance, is designed to protect businesses against losses resulting from cyber threats and data breaches. It typically covers the following:

Data breaches:
  • Costs associated with data breaches, including forensic investigations, customer notification, credit monitoring, and potential legal liabilities.
    • Cyber extortion:
  • Coverage for expenses related to ransomware attacks or other forms of cyber extortion.
    • Business interruption:
  • Losses resulting from system disruptions or downtime caused by cyber incidents.
    • Privacy liability:
  • Legal costs and damages resulting from violations of privacy regulations or laws.
    • Network security liability:
  • Coverage for legal costs and damages arising from third-party claims related to network security failures.

    • Crime Insurance –

    Is designed to protect businesses against financial losses resulting from criminal acts committed by employees or third parties. It typically covers the following:

    Employee dishonesty:
  • Losses due to theft, embezzlement, or fraudulent activities by employees.
    • Forgery or alteration:
  • Losses resulting from forged or altered financial instruments.
    • Computer fraud:
  • Losses caused by fraudulent computer-related activities, such as hacking or funds transfer fraud.
    • Funds transfer fraud:
  • Losses arising from unauthorized electronic funds transfers. · Counterfeit money: Losses due to the acceptance of counterfeit currency.

    • Comparison – Cyber vs Crime

    Sl no

    Desciption

    Cyber

    Crime
    1. Coverage Cyber extortion Cost Funds Transfer due to hacking
    Network Interruption Cover Theft of Money/Securities by Employees/Outsiders Theft of Money/Securities by Employees/Outsiders
    Third Party Data and Damages and Defences cost for any claim against them Impersonation Fraud Impersonation Fraud
    Forensic Cost Investigation Cost
    Adminstrative Fines and Penalties Reonstitution Cost
    Notification Cost Frauds by Employees/Outsiders
    Business Interruption No Business Interruption
    2. Triggers Mainly External (Hackers) Mainly Internal (Employees)
    3. Computer Fraud / E Theft Loss due to hack from external source resulting in financial loss even is covered Loss is covered when insured systems are hacked
    4. Instrument of Crime Computers and Internet only Embezzlement, Forgery/Computers
    5. Losses Covered 5 Losses Covered Economic damages arising through a failure of network security or privacy controls which may cause indirect losses Direct loss of your funds, whether through maleficence, employee dishonesty or social engineering
    6. Party to incident Generally First Party Generally Third Party
    Overlapping of Cyber and Crime Risks

    While there can be some overlap between crime insurance and cyber insurance, they primarily cover different types of risks.

    Crime insurance focuses on financial losses resulting from criminal acts, both by employees and external parties. It includes coverage for employee dishonesty, fraud, forgery, and other forms of traditional criminal activities.

    On the other hand, cyber insurance specifically addresses risks related to cyber threats, data breaches, and other cyber incidents. It covers costs associated with data breaches, cyber extortion, business interruption, and liabilities arising from privacy or network security failures.

    There can be scenarios where the two types of insurance overlap.

    For example,

    If a cyber incident involves employee fraud or embezzlement, both crime insurance and cyber insurance may come into play to cover different aspects of the loss.

    Business Need Both Kinds of Coverage

    These two types of risks are the largest overlap between the two types of insurance policy because both risks involve criminal activity and direct losses but also occur in cyberspace and incur indirect losses.

    Outside of instances where the policies overlap, the clearest way to delineate what event will trigger which type of coverage is to define if the loss was direct or indirect, tangible or intangible.

    That’s why having both types of coverage is essential.

    Insure with 360 degree coverage………….