Personal Cyber Insurance for Internet Frauds: What You Need to Know

With an ever-growing work-from-home culture because of limitations imposed by COVID-19, there has been an increase in reports of criminals accessing personal information on unprotected networks and demanding ransom or threatening to sell it. As a result, it has become crucial to employ effective methods to reduce the risk of internet-based data thefts.

What Is Cyber Insurance?

Personal cyber insurance is a new coverage that helps protect you against internet-based damages. Here, your provider compensates you for losses resulting from cyberattacks.

This policy may also be referred to as:

  • Cyber Protection Insurance Policy
  • Personal Cyber Risk Insurance Policy
  • Internet Crime Insurance Policy

What Is Covered by Cyber Insurance?

This coverage doesn’t include all types of cyberattacks. A standard policy offers limited coverage, but you can ask your provider about additional coverages.

Here are some common internet-based damages that you might want to cover with your cyber insurance:

  • Ransomware and cyber extortion
  • Malware
  • Phishing scams
  • Identity theft
  • Unauthorized withdrawals from your bank account due to leakage of personal information
  • Inability to access your home because the security control system has been hacked
  • Loss of access to files and other information due to a breach in your computer system
  • Cyberbullying
  • Internet stalking, which is when a criminal uses fraudulent methods to find your exact location

Does Home Insurance Cover Internet or Cyber Crime?

Most home insurance policies do not include cyberattacks. Recent reports have shown that 4 out of 5 people with connected devices do not have insurance coverage or don’t know if they are covered. This is because most providers do not include this coverage under home insurance policies. It isn’t a standard offering in a homeowners policy, and some companies don’t offer it at all.

With the growing popularity of cybercrime coverages, insurance providers may start including it as standard coverage, or as an endorsement to your existing policy. Do not hesitate to contact your provider to know if it is included in your policy. If it isn’t, ask if they can include it as an endorsement to cover you. You may even switch to another provider who offers cyber insurance as part of the home insurance policy.

How Much Does Personal Cyber Insurance Cost?

Like most insurance policies, the cost of personal cyber insurance coverage depends on multiple factors. The extent of your coverage will determine how high your premium rate will be. Whether you purchase it as part of your home insurance policy or as extra coverage will also determine its cost. Insurance companies with high-value clients tend to offer comprehensive cyber protection coverage, with limits beyond the standard cyber insurance.

Are you looking for ways to protect your confidential information from data breaches and cyber frauds? If so, then contact the experts at Duane Weber Insurance in Kent, Washington. We can help you protect your personal information with the right insurance coverage today!