Given the rise in frequency and cost of cyber crimes, you may want to consider purchasing some level of personal cyber insurance from your home insurance company. In 2020, the FBI’s Internet Crime Complaint Center received almost 800,000 complaints of cyber crimes, with a total estimated cost of $4.2 billion.
How does personal cyber insurance work?
Broadly speaking, a personal cyber insurance policy provides financial reimbursement for the covered costs associated with the theft of digital information and assets.
There are usually three categories of covered expenses – personal and home protection, extortion and financial loss from fraud.
Cyber personal and home protection coverage (also called cyber attack coverage)
This coverage protects the policyholder against the financial consequences of personal online attacks, also called cyber bullying, or attacks against the integrity of your home systems.
If a cyber attack results in people being unable to access their home or needing to replace an electronic device, the coverage ensures that they’re reimbursed for the costs associated with resolving the event.
Cyber extortion coverage
Cyber extortion is when online criminals threaten the release of sensitive personal data or prevent individuals’ access to their technology devices in return for a ransom. A personal cyber insurance policy reimburses individuals for payments they made under the duress of an extortion threat.
Cyber financial loss from fraud coverage
Coverage for financial loss or fraud as a result of a cyber event can refer to a wide range of scenarios. These may include identity theft, stolen bank funds or fraudulent use of credit cards or checks.
There is no “standard” form of coverage for personal cyber insurance. Each of our carriers provide different coverage options and pricing. Typically this additional coverage starts at $60 for the year. Interested in learning more? We at Herlihy Insurance Group are here for any questions!