Cyber Insurance in UAE

What is Cyber Insurance?

Cyber risk insurance is a commercial insurance product that secures businesses from the financial and operational impact of cyberattacks and data breaches.

Running a business in today’s digital world comes with unique challenges. While traditional business insurance covers risks such as physical damage or natural disasters, it usually does not protect against online threats. This creates a gap that cyber insurance is designed to fill.

A cyber policy focuses on digital risks, protecting against data loss, IT disruptions, ransomware attacks, and other cyber uncertainties. It is an essential tool for businesses to recover from financial losses, manage liabilities, and return to operations quickly after an attack.

Why is Cyber Risk Insurance Important?

Cyber threats are rising rapidly for businesses in the UAE. According to the UAE Cyber Security Council, the country faces more than 200,000 cyberattacks daily, with critical sectors being the main targets.

Although many businesses employ advanced security systems, hackers find new ways to break through. By leveraging emerging technologies, including artificial intelligence, etc., cybercriminals are making malware and ransomware challenging to detect.

The advancement in cyber threats is a stark reminder for businesses to have the right cyber risk insurance. While the coverage might not fully prevent cyberattacks, it provides protection against financial losses, reputational damage, legal liabilities, and business interruptions. This policy helps companies recover faster, ensuring continuity and resilience in today’s advanced tech-oriented landscape.

Who Should Buy Cyber Risk Insurance in UAE?

Businesses of all sizes, whether they’re large, small, medium, or even startups, should consider a cyber insurance policy. It protects businesses across different sectors that use technology and store sensitive data in the UAE. This includes:

• Healthcare sector - Hospitals, pharmaceuticals
• Financial institutions - Banks, insurance companies
• Small and medium-sized businesses
• Government contractors
• E-commerce platforms
• Educational institutes
• Tech-dependent or IT companies
• Aviation and logistics, and more.

What is Covered Under Cyber Risk Insurance in the UAE?

A standard policy typically offers first- and third-party coverages. It includes the following coverages:

What Is Not Covered Under Cyber Insurance in UAE?

Here are the common exclusions under cyber risk coverage in the UAE:

• Terrorism and acts of war
• Equipment failure or device damage (physical)
• Poor security processes
• Prior breaches
• Technology and system improvements
• Human error
• Insider attacks (by employees)

Cyber Insurance Add-Ons

You can extend the coverage of a cyber policy with the following add-ons:

• Bricking
• Betterment
• Contractual liability, and more

✍️ It’s important to examine the inclusions, exclusions, and additional coverages under your chosen plan.

Common Types of Cybersecurity Threats in the UAE

To buy the right cybersecurity policy in the UAE, you need to be aware of the common types of cyber threats in the UAE:

• Phishing attacks
• Ransomware
• Data breach
• Network security failure
• Cyber extortion
• Malicious software
• Supply chain attacks
• Cyber liability, and more

Why Choose Policybazaar UAE for Cyber Risk Insurance?

At Policybazaar.ae, we understand the key requirements of modern businesses and offer a customised cyber risk insurance policy. Here are some of the reasons to choose us for your business insurance needs:

Top Insurers:

We proudly partner with the UAE’s most reputable insurance providers.

Tailored Policies:

Choose the best cyber insurance coverage that suits your unique business needs.

Quick Processing:

Secure your business in just a few clicks with the complete digital process.

Expert Support:

From purchase to claims, our experts provide dedicated customer support.

Easy Claim Process:

Experience a seamless claim settlement process without any headaches or waiting.

Affordable Coverages:

We offer cost-efficient plans designed with transparency—no surprises, only true value.

How to Buy a Cyber Insurance Policy Online in the UAE? 

Policybazaar.ae is a trusted online platform that helps you buy the right cybersecurity insurance plan without any hassles. Follow these simple steps and buy the suitable coverage for your business:

• Go to the homepage and click ‘Business Insurance’
• Explore the section and choose ‘Cyber Risk Insurance’
• Fill out the lead form with the required details
• Submit your request, and it’s done
• You will receive a call from our representative to assist you in choosing the right plan.

Cyber Risk Insurance Claim Process

Follow these simple steps to claim cyber security insurance:

File a Police Complaint

The first step in case of a cyber attack is to report it to the police. You can go to the nearest police station to file a complaint. You can also file a report online on any of the following channels -

1. eCrimes Platform - Launched by the UAE’s Ministry of Interior.
2. eCrime website (http://www.ecrime.ae/) - Dubai Police
3. Aman Service (https://srv.adpolice.gov.ae/en/aman/pages/default.aspx) - Abu Dhabi Police
4. The ‘My Safe Society’ App - UAE’s Federal Public Prosecution

Note: A police report of the crime is a major prerequisite to filing a claim.

Immediately Inform the Insurer

Next, notify your insurer without delay. Share all key details, like how the breach occurred, its nature, potential damage, and more.

Gather Evidence and Documents

After reporting the incident, the next step involves gathering the evidence and documents to support your claim. Save system logs showing when and how the breach occurred, take screenshots of suspicious activity, and keep all related emails. If possible, get a forensic report. Thorough documentation supports your claim and increases the chances of approval.

Evaluation of Loss and Investigation

The insurer assesses the impact of the cyberattack and evaluates business losses/damages. They assign forensic experts and IT professionals who will verify how the breach happened and calculate losses. Then, direct costs, such as ransom payments, and indirect costs, including downtime or reputational damage, are evaluated. Based on this, they determine the compensation you’ll receive.

Claim Settlement

After the investigation, the insurer will decide whether to approve or deny your claim. Approval largely depends on factors such as policy coverage, timely reporting, and compliance with cybersecurity requirements. However, claims can be rejected if exclusions apply.

If approved, the insurer will release the compensation amount within the specified timeframe (varies from insurer to insurer). You can receive the payout through various channels and get the financial relief.

How to Choose the Right Cyber Insurance Policy in the UAE?

Cyber threats are common. Therefore, securing the right coverage to cover liabilities that can occur is crucial. Thus, when choosing a cyber risk insurance policy, keep the following in mind -

Assess Your Business Needs

Identify your business’s digital assets, sensitive data, and potential vulnerabilities. Based on this, analyse the coverage type your business really requires.

Compare Policies

Research different cyber policy insurers and policy options in the UAE, comparing coverage limits, exclusions, and add-ons. This can help you choose the right plan that suits your business requirements.

Check the Reputation & Support of the Insurer

When purchasing a policy, verify the insurer’s reputation and claim support. This way, you won’t face problems later when you really need their support.

Understand the Policy Carefully

Go through the entire policy wording, including inclusions, exclusions, deductibles, and coverage limits. This helps you know exactly what is covered and avoids surprises during claim processes.

Expert’s Tips to Prevent Cyber Attacks

Use the following tips to reduce cyber attacks:

• Regularly conduct security audits to identify vulnerabilities in your business.
• Invest in advanced cybersecurity tools such as antivirus software, firewalls, and encryption to protect your data.
• Educate employees on cyber threats and train them to recognise scams, including phishing attempts.
• Enable multi-factor authentication (MFA) for added account security.
• Continuously monitor and update your systems to prevent breaches.
• Consider cyber insurance to safeguard your business against financial losses.

What are the Factors Affecting the Cost of a Cyber Insurance Policy?

Your cyber insurance cost is largely affected by a range of factors. We have listed the key factors that influence cyber risk insurance policy premiums in the UAE below:

Business Size and Industry

Cyber insurance premiums depend on your business size and industry. Bigger companies pay more due to a large number of employees, higher data volumes, and system complexity. Similarly, sectors like healthcare, finance, and retail face higher costs because they store sensitive customer information, making them prime targets for cyberattacks.

Amount of Sensitive Data

The type and amount of data your business manages directly impact insurance costs. If you handle sensitive details like medical records, credit card numbers, or banking transactions, premiums are higher because the risk and potential losses are greater. In simple terms, the more valuable your data, the more expensive it becomes to insure.

Scope of Coverage

In the UAE, cyber risk insurance is available with different levels of coverage, ranging from basic plans to more comprehensive ones. The nature of your business determines the scope of coverage that directly influences the premium. If you go for wider protection with extra add-ons, you’ll pay more than a standard plan with basic coverage.

Businesses’ Cybersecurity Measures

The way you protect your business online directly affects your coverage cost. If you implement robust security protocols, such as firewalls, data encryption, employee training, and regular security audits, insurers may offer lower premiums for the policy. But with weak or outdated systems, the risk is higher, so your premium will likely be higher.

Revenue of Business

It’s another critical factor determining the cost of cyber crime insurance in the UAE. Businesses with higher revenue usually handle more data and transactions, which increases their exposure to cyber risks. Insurers consider this a bigger potential loss if an attack occurs; therefore, high-revenue companies may pay more for a policy.

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