The notion that cyber-crime is restricted to lone hackers working from a PC in their bedroom is long outdated. Sophisticated and interconnected groups now target companies and individuals in increasingly audacious attacks: Payment gateway company Razorpay recently got robbed of Rs. 7.3 crores by hackers using ‘failed transactions’.

Recent high-profile cyber-attacks demonstrate that the extent of associated possible losses is also broadening, increasingly comprising both physical and financial damage relating to data privacy breaches and to companies’ tangible and intangible assets, and also business interruption costs. As a result, the issue of cyber protection is rising up the corporate agenda, at both large and small companies. 

Between 2018 and 2021, there was an over five-fold jump in the number of cybercrime and fraud incidents recorded by the government, as informed by the ministry of electronics and information technology (Meity) to a parliamentary panel.

Basically, the number of incidents rose from 208,456 in 2018 to 1,402,809 in 2021, as per the Data available with the Indian Computer Emergency Response Team (Cert-In). 
According to Microsoft India President Anant Maheshwari – Cybercrime costs economies more than USD 6 trillion each year today and that is expected to reach nearly USD 10 trillion by 2025.
The main point remains that there is an urgent need to address these growing (cybersecurity) challenges. More and more businesses are raising the serious question of what they can do to mitigate the risks and improve the odds of surviving an attack. In part, the answer is Cyber Insurance — an insurance policy designed to protect businesses from the fallout due to cyberattacks, data breaches, and other hacking-related threats.

Corporate Cyber Insurance

Corporate Cyber Insurance, also known as cyber liability insurance, is essentially purchased to reduce the financial risks associated with doing business online. It covers losses and business liability arising out of a cyber security breach. The policy offers complete insurance protection to your business against cyber or digital risks that can result in a financial loss to the insured and reputational loss to a third party because of a breach in the insured’s systems.

This insurance is very crucial and useful in today’s world which incorporates online functions in daily activities. Cyber security policies can change from one month to another, given the dynamic and fluctuating nature of the associated cyber risks, keeping up with newer possible cyber threats against businesses.

Why is Cyber Insurance important?

It is extremely necessary that the corporates should adopt this policy in order to secure all their financial data, employees & customers’ data, programs, computer and network of an organization from the unauthorized access and exploitation. Also, in case of a cyber-attack there are high costs required to be incurred for forensics, investigation, ransom-ware, and losses related to business interruption of the insured post an attack. Implementation of corporate cyber security will not only minimize the risks of data breach but will also improve a firm’s mean-time to respond to an attack.

Other than coverage for financial losses from cyber events, cyber risk coverages also help with remediations, including paying for legal assistance, investigators, crisis communicators and customer credits or refunds.

Why do small businesses need Cyber Insurance?

Cyberattacks and data breaches are expensive and increasingly common. While an increasing number of companies are buying cyber insurance to manage their risk, these are generally large corporates.

However, in many ways it is the small and medium-sized enterprises that are the most in need. They are just as vulnerable as any larger firm, but they are more likely to be without the necessary resources and in-house skills to design and implement a comprehensive cyber security strategy. This makes them an attractive target.
A cyberattack isn't just an inconvenience – it can put you out of business. In fact, 60% of small businesses go under within six months of a cyberattack.
Cyber insurance coverage helps your business recover from financial losses caused by cyberattacks and data breaches. It can pay for credit monitoring, attorney's fees, fines, and other costly expenses.
If your company handles sensitive information, you need a cyber policy…
Cyber liability insurance is a key policy for companies that handle credit card numbers, work in the cloud, or operate in cybersecurity.
Hackers often target retailers, healthcare organizations, and financial service providers, but any business can fall victim to a data breach.

How much does cyber liability insurance cost?

The cost of cyber liability insurance depends on your cyber risks. Network security companies, IT consultants, and other companies that are responsible for their clients' cybersecurity may pay more for cyber liability coverage. They need third-party cyber liability insurance, which provides protection if a client blames their business for failing to prevent a cyber incident.

Most businesses only need first-party cyber liability insurance to defend against their own cyber risks. Businesses that handle a large amount of sensitive customer information, such as credit card numbers or Social Security numbers, pay more for this coverage.
For example, healthcare professionals with access to patients' medical records and retail stores that collect customers' payment information may have a higher premium.

The Pandemic Effect

Like most organizations, crime also went digital during the pandemic. As per the National Crime Records Bureau (NCRB) report for the year 2020, cybercrime surged 12% across the country, even as other crimes such as murder, theft and cheating witnessed a drop due to the national and regional lockdowns.

Let’s have a look at the numbers from the FBI IC3 (Internet Crime Complaint Center) which shows the difference between the number of cybercrimes reports it received pre-pandemic in 2019 and during the pandemic in 2020. 


Type of Cyberattack 2019 2020 % Increase/Decrease
Social attacks (phishing, vishing, pharming, etc.) 114,702 341,342 197.60%
Credit card fraud 14,378 17,614 22.50%
Investment scams 3,999 8,788 119.80%
Malware 2,373 1,423 -40%
Identity theft 16,053 43,330 169.90%
Ransomware 2,047 2,474 20.90%
Denial of service (including DoS) 1,353 2,018 49.20%

How can Raghnall help?

It's clear that there is great potential in the cyber risk insurance market and we want to support our clients in building a sustainable and profitable book of business.

Our proposition for businesses consists of expert advice, a suite of cyber solutions, including product development support, cyber analytics on single risks, portfolios and accumulation pathways as well as a better understanding of how to manage the accumulation of risk.
We, at Raghnall, build partnerships with your organization that go beyond pure risk transfer and offer a variety of support services, like crisis management support or help with preventative measures.
Allow us to assist you safeguard your business from any circumstance which risks the business. With our recommendations and advices, you can secure the best suited corporate cyber insurance for your business, encouraging you to move towards growth and enhancements.
To know more about how Raghnall can help you get the right Cyber Liability Insurance for your business, contact us today at
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