Since the onset of COVID-19, cyberattacks have been on the rise sharply. The FBI’s Internet Crime Complaint Center (IC3) received 791,790 reports of such incidences in 2020. This figure is 69.4% higher than the total suspected cyberattack complaints reported to the IC3 the previous year. While you may be using the most advanced cybersecurity solutions, you can still fall victim to data breaches, ransomware attacks, and other internet or personal data-related violations. That’s why it makes sense to have personal cyber insurance on hand, just in case.
Here’s a look at some of the cyber threats you should beware of and how to protect yourself with the right coverage.
What Does Personal Cyber Insurance Cover?
This policy can cover cybercrime losses, damages, or liabilities such as:
- Malware removal cost-It’ll usually cost you to remove a virus from an infected device like a PC or smart home system or restore your programs. Cyber insurance can pay for this expense.
- Cyberbullying-This type of cyber-attack is very common, especially because of the popularity of social networking platforms. Your insurance can compensate you after online harassment causes you to unfairly lose your job and wages or incur costs such as relocation expenses and legal fees.
- Cyber extortion- This happens when cybercriminals demand ransom after seizing your computer network and denying you access to it. If your insurer approves the ransom payment, you’ll be compensated for the loss. The policy can also pay for the cost of hiring experts to help you regain access to your computer system and data.
- Data breach-You may be liable for the cost of retrieving third-party personal data stolen while in your custody, such as customers’ credit information stored on your PC. Cyber insurance can pay for services that the victims may enlist to regain their data or prevent further damage.
- Online fraud– When you’re an identity theft victim, you can suffer financial losses from issues like unauthorized bank withdrawals/credit transfers or fraudsters opening bank accounts in your name. Phishing and password theft are also covered.
Other costs that cyberattack insurance can pay for include:
- Recovery and resolution with the help of fraud specialists
- Active cyber monitoring to mitigate or avert loss
- Defense attorney fees if sued for inadvertent online defamation or privacy breach
- Repairing or replacing digital files
- Replacing, recreating, or recovering personal identification documents
How Does Personal Cyber Insurance Work
You’ll typically need to be a renter, condo, or homeowners insurance policyholder to obtain this optional coverage. The first step after falling victim to a cyberattack is filing a claim with your insurer. Your policy can pay for the money you’ll spend to recover your lost or seized data or defend yourself in court if sued. It can also help you recover any financial losses incurred in a covered event like internet fraud or cyber extortion.
However, if cybercriminals demand ransom to release your computer system or data, pay only after getting your insurer’s approval. Keep in mind that the hackers may refuse to unlock your data and demand more even after you’ve paid the asked ransom fee. That’s perhaps why the FBI recommends against agreeing to the hackers’ terms.
Just like other insurance policies, personal cyberattack coverage will have a limit and a deductible. The latter is the amount you must pay out of pocket for a covered cyber loss before your insurance can kick in.
The alarming cyber-attack statistics reported every year are a valid reason to do everything you can to stay out of harm’s way. At Hoffman Brown Company, we are constantly looking for insights to help our clients stay safe from a broad range of perils. Contact us today to learn more about protecting yourself with personal cybersecurity insurance.