Our lives are increasingly lived online. From banking and shopping to work, school and smart home devices, we are constantly connected.
That convenience comes with a tradeoff: individuals are now exposed to many of the same cyber risks that once targeted only businesses — and the costs to recover from some of these events can be costly. For example, if you are the victim of identity theft, it can cost more than $10,000 to recover after perpetrators open accounts in your name and ruin your credit.
Here’s the scary part: Consumer cybercrime complaints and reported losses have reached record levels in recent years, underscoring how common these risks have become, according to the FBI.
As these attacks grow in number and scope, there is now an insurance policy that can help pay for recovery from the cyberattacks proliferating today. Personal cyber insurance does not prevent these incidents, but it can help policyholders when the worst happens.
Cyber threats
Personal cyber insurance is designed to address a wide range of online risks, including:
Ransomware attacks — Hackers can lock a computer or encrypt personal files such as photos, tax records or business documents and demand payment to restore access.
How it can help: Cyber insurance can reimburse you for approved ransom payments, subject to policy limits and conditions. It can also provide assistance from specialists who help evaluate and respond to ransomware or extortion attempts.
Malware and viruses — Malicious software can corrupt devices, steal passwords or give criminals access to personal and financial data.
How it can help: Coverage may include payment for professional IT services to remove malware and restore devices and data.
Online fraud and scams — Phishing e-mails, fake websites and impersonation schemes can trick people into transferring money or sharing sensitive information.
How it can help: Cyber insurance can provide coverage for certain financial losses from fraud or deceptive money transfers.
Identity theft — Stolen Social Security numbers, account credentials or medical information can be used to open fraudulent accounts or make unauthorized purchases.
How it can help: Cyber insurance can provide expert case managers to guide victims through the recovery process, including contacting creditors and disputing fraudulent charges.
Data breaches and privacy violations — Personal information may be exposed, published online or used to defame or harass an individual or family member.
How it can help: Coverage may include credit monitoring, legal assistance and help restoring records.
Cyberbullying and online harassment — In some cases, attacks involve sustained harassment that can lead to counseling expenses, tutoring costs or even temporary relocation.
How it can help: Coverage may include legal fees, lost wages or counseling costs tied to covered cyber events.
A smart addition to your personal protection plan
Strong passwords, software updates and fraud awareness are still essential. Insurance does not replace good cyber hygiene, but it can provide a safety net when preventive steps fail.
If you are concerned about cyberattacks, online fraud or identity theft, contact us to see if personal cyber insurance makes sense for your situation and what options are available.