Modern technology has made life easier, but it also brings new risks. A personal cyber insurance policy could help protect you and your family from online mishaps.
Let’s consider a ransomware attack. Say you accidentally click on a malicious email link, and now you can’t access your computer files until you pay a sum of money to the attacker. A personal cyber insurance policy should reimburse you for using professional IT services to recover your data or possibly help you pay the ransom.
Like all insurance, a personal cyber policy won’t prevent problems. Still, it’s there to help you recover if something does.
What personal cyber insurance covers
Like each homeowners policy, every personal cyber policy varies, but typical coverages include the following:
- Cyber extortion could be a ransomware attack or when a malicious actor holds other files or data hostage in exchange for a ransom.
- Online fraud or identity theft may help cover illegal bank transfers, counterfeit money, check forgery, or phishing attacks.
- Cyberbullying is when someone harasses you or your child online. Cyber insurance may reimburse expenses for counseling, temporary relocation, or monitoring of social media accounts.
- Identity Theft is if someone steals your identity and takes out loans, credit cards, or applies for services under your name.
A more comprehensive range of protections exists depending on the policy and particular endorsements. However, there are many exclusions, too, including prior knowledge. So you can’t buy a personal cyber policy the day after someone hacks your computer to help you clean up the problem.
How much is cyber insurance?
Again, like homeowners insurance, the cost of personal cyber insurance will vary based on the coverage you need. Coverage can be inexpensive, starting at just a few dollars a month or reaching into the thousands of dollars, depending on the limits.
Most insurance companies, including AIG, Chubb, and PURE, offer cyber protection as an add-on to a homeowners or renters insurance policy.
In 2022, the FBI’s Internet Crime Complaint Center received over 800,000 cybercrime-related complaints, with losses totaling over $10.3 billion. That averages out to $12,875 per cybercrime.
While cyberattacks have moved away from individuals in recent years, having some personal cyber insurance could give you peace of mind. Speak with a trusted insurance advisor to learn and see what best fits your needs.
