We have all heard the stories of businesses being hacked or data being leaked. Major companies like Facebook and Adobe and much smaller local businesses alike have all fallen victim to these cyberattacks, but did you know that cybercrime isn’t business exclusive? Individuals are just as much at risk.
Throughout the last decade, we have seen technology become an increasingly larger part of our lives. From attending school to ordering groceries, everything is done online these days. With this increased use of technology, the risk of you falling victim to a cyber-attack increases. In 2020, the FBI’s Internet Crime Complain Center received almost 800,000 individual complaints of cybercrimes, averaging over $5,000 in losses per person*.
How can you protect yourself?
Protecting yourself and your data online is a two-fold process. The first of which involves proactively protecting your information via firewalls, backups, and security protocols. Simple acts like using complex passwords, making sure your privacy settings are up to date, and being careful what you download or click on can help. The second step is having a good personal cyber liability insurance plan in place.
Personal cyber liability insurance?
Personal cyber liability insurance is insurance coverage that can help provide financial assistance for the costs associated with the theft of digital information and assets up to your policy’s limits. In other words, it can help make sure that you have the financial resources to pick up the pieces after a cyber-attack.
There are a number of ways that cyberattacks can result in financial loss for example theft of bank account funds or payments made after extortion through a ransomware attack. Not all personal cyber liability insurance policies are the same but generally, they all cover expenses fitting under three main categories: personal and home protection, extortion, and financial loss from fraud.
Cyber Personal and Home Protection Coverage
This coverage is sometimes also called cyberattack coverage. It protects the policyholder against the financial losses of personal online attacks, cyberbullying, or attacks against the integrity of your home systems. For example, if a cyberbullying attack resulted in the wrongful loss of a job, this coverage could cover the lost salary up to your outlined policy limit or if a cyber attack resulted in you being unable to access your home, this coverage can help resolve the issue.
Cyber Extortion Coverage
Cyber extortion is when online criminals threaten to release personal data or prevent use of your devices in exchange for money, otherwise known as a ransomware attack. This coverage protects the policyholder against the financial losses of making payments under the duress of an extortion threat. In other words, if you pay the ransom it can help to reimburse those costs. This coverage may also be able to help cover the costs of investigating the attack and preventing another one in the future depending on your policy.
Cyber Financial Loss From Fraud
This coverage protects the policyholder in a wide range of scenarios including identity theft, stolen bank funds, fraudulent use of credit cards, and more. In the past, this coverage has been offered by many as a standalone policy or as an endorsement of some homeowner’s policies, but identity theft coverage alone does not often protect against the wider range of risks that cyber threats pose.
When it comes to protecting yourself and getting a cyber liability insurance policy, the best way to make sure you are covered properly is to have a discussion with your trusted insurance agent. The world of cyber insurance is new and there any many different companies and options out there that all provide different levels of protection. Give us a call at 844-GANNONS to speak with one of our licensed agents today and get protected.