Cyber insurance: Interestingly, nearly 45 per cent of cyber insurance claims in the B2B space are linked to business interruption.
New Delhi: With the advent of technology, humans have found new and easier ways of doing almost everything. However, this has also resulted in growing reliance on technology and increasing prevalence of cyberthreats.
According to Evaa Saiwal, Head of Liability Insurance at Policybazaar for Business, the cyber insurance landscape has rapidly shifted from being a niche product to a critical business requirement over the past few years.
“This surge in demand is driven by the rise in evolving cyber threats. The market is on a strong growth trajectory, not only among large corporations but also among SMEs and emerging sectors. In fact, nearly all cyber insurance clients—close to 100%—are renewing their policies,” Saiwal said.
What Does Cyber Insurance Cover?
Cyber insurance generally covers financial losses and liabilities resulting from cyber incidents such as data breaches, ransomware attacks, business interruptions, and associated expenses like forensic investigations, legal counsel, and crisis communication.
Cyber Insurance Has Two Key Components
Cyber insurance policies typically include two key components: first-party and third-party coverage. First-party insurance protects the policyholder against direct losses and expenses due to a cyber event, whereas third-party insurance covers legal liabilities from claims filed by external parties affected by the incident.
Interestingly, nearly 45 per cent of cyber insurance claims in the B2B space are linked to business interruption.
“This highlights the growing role of cyber insurance as a tool for maintaining business continuity. Organisations are increasingly turning to these policies not just to manage financial risk, but also to minimise operational downtime,” Saiwal said.
As cyber threats like ransomware, phishing, and data breaches become more frequent, integrating cyber insurance with broader cyber risk management strategies will be essential to fostering a secure and resilient digital business environment.
