With cybersecurity breaches making frequent headlines, consumers may wonder how to protect themselves. Simply taking measures to guard against identity theft, data breaches and other cyber threats may not be enough as bad actors become more sophisticated.
As a result, more businesses and individuals are turning to cyber insurance coverage for peace of mind. Cyber insurance offers protection against financial losses resulting from cyberattacks and can help victims safeguard what they care about in the event they fall prey to a bad actor.
Who should consider cyber coverage?
Some may think cyber insurance coverage is only for businesses, but many consumers should consider this kind of protection, too. For example, those with expansive digital footprints, including a significant online financial presence, have high exposure and are vulnerable. The same goes for those who use social media extensively and may unwittingly share identifying information that may be useful to hackers.
People with a high net worth are also attractive targets to cyber criminals, and so are professionals who have access to sensitive or confidential information, such as medical and legal records. Also, people with smart home security networks may be at increased risk, as connected devices are as vulnerable to cyberattacks as other online networks, systems and applications.
It’s important to review your personal circumstances to determine if you would benefit from the added protection cyber insurance provides.
The growing threat of cybercrime
Cyberattacks have become commonplace in modern life, and cybersecurity professionals are hard pressed to stay one step ahead of bad actors. Data breaches are a regular occurrence, despite the vast resources of major corporations, and consumers can become victims of cybercrimes without even knowing about it.
At home, it’s even harder for consumers to stay ahead of the latest in ransomware, phishing, social engineering, and malware on their personal devices. Bad actors also target energy and transportation infrastructure, which can also have a downstream impact on consumers’ personal lives. Cyber insurance can offer another layer of protection against these growing cyber risks.
Enter cyber insurance
Businesses and consumers, alike, are at risk of financial losses from cyber threats and data breaches. Fortunately, a wide range of cyber insurance policies are available to add another layer of protection.
Some common kinds of cyber policies are identity theft coverage and personal data breach insurance. In the event that your personal information is stolen and used by fraudsters, these coverages can help by providing guidance and support with the identity restoration process. This includes the costs of credit monitoring services, compensation for financial losses and even legal support as you navigate the process of making your identity whole again.
Home network security coverage provides protection in the event you fall victim to a home smart device hacking. This kind of policy can help cover the costs associated with responding to the hack and getting your devices and security network operational again.
There is also coverage that can protect against cyber extortion, which is when a bad actor threatens to release your personal data or interrupt your networks or systems unless you pay a ransom. This kind of policy may offer assistance with ransom payments, the cost of consulting services to help you respond to the attack and other related remediation efforts.
Finally, some people fall victim to online harassment and cyber bullying. Some policies may help cover the costs of legal fees, counseling services and related expenses as you navigate the situation.
Finding the right cyber policy for your needs
Consumers, like businesses large and small, have their own unique risks and protection needs. When considering cyber insurance, first be sure to review any existing insurance you may have, as cyber coverage may be included in some policies. If you aren’t sure, ask your insurance professional to check on your behalf.
If you need additional cyber coverage, it’s wise to research different cyber insurance offerings and carriers to see what’s available to consumers in the market. It’s important to read the fine print to gain an understanding of what’s covered under a given policy, what the coverage limits are, how much the deductibles are, and if any additional risk management support services are included.
If you’re considering cyber insurance, be sure to partner with a seasoned insurance professional from a respected and financially stable carrier for personalized, up-to-date advice and recommendations. Then, you can reap all of the benefits the online world has to offer with the confidence and peace of mind that you are protected from the downside risk.