What is Personal Cyber Insurance and Why is it Important?

October 18, 2022by TNTMAX

As technology becomes more and more ingrained in our everyday lives, so does the risk of cyberattacks. Personal cyber insurance policies offer a way to protect yourself financially against these risks.

“The COVID-19 pandemic has forced businesses to adopt a new operating model. Working from home has become the new accepted standard. This has created major opportunities for threat actors and hackers,” said TNTMAX President Frederic Farcy. “Most homes are not as well protected as our businesses. This has created new challenges for IT professionals and a target rich environment for hackers to exploit.”

Cybersecurity insurance for business has become a new norm and is now required in many industries. Now, cybersecurity insurance is expected to become an increasingly larger part of the insurance market as threat levels increase in number and sophistication, noted Farcy.

What is Personal Cyber Insurance?

A personal cyber insurance policy provides a range of coverages to help protect you online. It can help cover expenses related to a cyber attack, such as identity theft, fraud, ransomware, cyberbullying and more, according to USAA.  Several homeowners insurance companies, such as State Farm and USAA, offer this insurance as an add on.

Who May Need It

Today, due to the rise in cyber crimes we’ve witnessed, many individuals might want to consider purchasing some level of personal cyber insurance.

The FBI’s Internet Crime Complaint Center received almost 800,000 complaints of cyber crimes in 2020, with a total estimated cost of $4.2 billion. That comes out to an average cost of over $5,300 per cyber crime, Value Penguin reported.

Anyone who owns a laptop, tablet, smartphone or gaming system could benefit as well as those who use a smart home appliance such as Google Home or Alexa. Additionally, anyone using social media, banking apps or manage money/investments online, should consider cybersecurity insurance.

What Does it Cover?

Personal cyber insurance covers a range of cyber crimes such as:

  • Cyber attack coverage: pays for the removal of a virus or reprogramming of desktops, laptops, smartphones, tablets, Wi-Fi routers and other internet access points.
  • Cyberbullying coverage: helps you deal with online harassment that results in wrongful termination, discipline from school, temporary relocation expenses, temporary private tutoring, lost wages and legal expenses.
  • Cyber extortion coverage: helps you recover from ransomware attacks that block you from accessing your personal data and demanding a fee to regain control.
  • Data breach coverage: helps pay for services if personal data entrusted to you is lost, stolen or published.
  • Online fraud coverage pays for direct financial losses due to problems like identity theft, unauthorized banking or credit card transfers, phishing schemes and other types of fraud.

How Does It Work?

If you fall victim to a cyberattack, you will be able to file a claim to help pay for expenses, such as legal fees or document recovery, as well as direct financial losses covered by your policy. The policy will have a coverage limit and deductible. In some situations, the insurance company might approve ransom payment for cyber extortion cases.

Fore more information on cybersecurity protection visit: https://tntmax.com/cyber-security-compliance/