Coimbatore: A cyberattack shuts down a factory, delaying deliveries and triggering contractual penalties. A system hack leaves hundreds of trucks stranded, disrupting its supply chain. An employee uploads confidential client contracts to a public AI tool, exposing sensitive information. This Cyber Awareness Month, Tata AIG General Insurance is urging businesses to check how prepared they are.

Tata AIG General Insurance is urging Indian corporates to strengthen their cyber insurance coverage as cyber threats, AI-led risks, and regulatory scrutiny continue to rise. The insurer said organisations now need to treat cyber risk as a core business exposure, on par with financial risks and natural catastrophes.
Businesses are becoming increasingly aware of their responsibilities under India’s Digital Personal Data Protection (DPDP) framework and evolving global privacy regulations. This is especially true for sectors such as banking, insurance, and healthcare, where companies handle large volumes of sensitive customer data and face growing concerns around cyber preparedness and liability exposure.

“AI risk today is at the turning point that cyber risk reached a decade ago. Cyber cover began as part of technology professional indemnity policies and grew into a category of its own. AI is moving the same way,” said Najm Bilgrami, National Head – Liability Lines, Tata AIG General Insurance. “Businesses should not assume that AI-related losses are automatically covered under the policies they already hold. They should map the exposure and ask their insurer or broker exactly where they stand.”

Tata AIG is building AI-specific risk assessment into its existing covers as customers increase their use of AI. Over time, the industry expects dedicated AI policies to emerge. These are likely to cover legal defence costs, third-party liability claims, regulatory investigations and business interruption linked to AI failures and other first party costs.