When asked to think about insurance coverage, you might immediately picture tangible items such as a house, a vehicle, or personal valuables. Home, auto, and content insurance plans help provide financial compensation for those material things in the event of a fire, theft, or collision. You might also think about your physical well-being with health insurance and life insurance policies created to assure you support if you fall ill, become injured, or worse, die. But another type of insurance is gaining in popularity that covers both the tangible and intangible: personal cyber security insurance.
Our everyday lives depend on technology, and the internet of things is increasingly integrated into people’s life. From bathroom scales to smart electrical panels to our cell phones, we’re connected to the internet every moment of the day. This constant connection can leave us vulnerable to cyber-attacks and data breaches that can cause significant damage to our identities, bank accounts, and other sensitive personal information. While you can help protect yourself by using secure devices and networks, personal cyber security insurance is another way to offer yourself protection and peace of mind in daily life. Let’s take a look at all the ways personal cyber security insurance can protect you from the damages of cybercriminals.
Personal Cyber Security Insurance Protects Against These Common Cyber Risks
Online Fraud
Fraud is a timeless scam criminals use to get sensitive personal information for financial benefit. From snake oil salespeople in the 1800s to today’s cybercriminals, harmful deception is an ever-present threat to regular internet users. With personal cyber security insurance, you can protect yourself against financial loss from online criminal deception, identity theft, or unauthorized use of your personal banking information and credit cards.
Data Breach
Data breaches are not reserved for large corporations. Cybercriminals will target individuals because they often lack adequate network protection to prevent an online attack. The hacker can find a vulnerability in your network in a data breach and hack in without your knowledge. Your data, banking information, and any contact details you have for others will be a target. Personal cybersecurity insurance protects you from the responsibility of having the sensitive information of others stolen in the breach. Your coverage can also help mitigate the costs associated with identity theft.
Cyberattack
Corporations are not the only targets for cyberattacks and hackers. One typical attack involves phishing scams. A phishing scam can take the form of a fraudulent email disguised as a legitimate message containing malicious links. Once a user clicks on the bad link, the hacker will gain access to your device and network to breach your data, steal your identity, and target others connected to you. Individuals are often easier targets for phishing scams because they lack the awareness of cybersecurity trends and network security systems that businesses do.
With our growing internet of things, we’re increasingly vulnerable to cyber-attacks through any device that connects to the internet. Cyber-attacks can also come from fraudulent online ads, downloading unofficial software, or in the form of an attachment in a message or email. Insurance coverage can help pay for data recovery and restoration costs associated with a cyberattack.
Cyber Extortion
Cyber insurance also protects individuals who find themselves a victim of another method of a cyber-attack involving cyberbullying and cyber extortion. Hackers can install ransomware onto your device through a phishing email or direct attack. Once the ransomware is installed, the hacker then proceeds to deny the user access to their device, sensitive personal information, and other data. The cybercriminal will then threaten to damage the data or permanently disable the user’s access to their system unless the victim pays a certain amount of ransom money.
In other scenarios, cyber extortion can be more personal. Some clients have encountered threats that the extortionist will leak their personal, private, or potentially damaging information and files unless the victim makes a ransom payment. Having personal cyber insurance coverage can give you peace of mind knowing that you have support and financial help in cyber extortion cases, as well as financial coverage to find professional assistance to regain your data.
How Does Cyber Protection Work?
Personal cyber insurance works in a similar way to any other insurance policy. With Cornerstone Insurance, you’ll meet with one of our dedicated insurance brokers to determine your needs and cyber risks. Then, your broker will shop the policies offered by our trusted insurance partners and present you with the best offers available. Our insurance experts are happy to explain each policy and answer any of your concerns to help you find the right coverage for you.
The claims process is similar to other insurance policies when you have a chosen policy in place. When a breach or cyber-attack happens, you can then file a claim with your insurance provider for compensation. Different types of claims will have different rules, but your insurance policy will typically have a deductible and policy limit. For example, suppose a cyberattack costs you $1500 in damages to repair your devices, and your deductible is $300. In that case, you will need to pay the $300, and your insurance provider would contribute the $1200 difference.
Do I Need Personal Cyber Insurance?
Everyone can benefit from the protection that personal cyber insurance provides. Anyone connected to the internet is at some risk for a cyber-attack, cyber extortion, or fraud. The decision about how much coverage you need will depend on the usual factors that influence insurance policies, including:
- Cyber risk factors
- Budget
- Coverage needs
- Eligible discounts
The Benefits of Working with an Insurance Broker
If you have questions about buying a personal cyber insurance policy, our Cornerstone Insurance brokers are happy to answer any of your insurance questions. As insurance brokers, it’s our job to find you the right policy from our network of insurance companies. Meeting with our team can help you understand your policy, your coverage, and the process of making a claim. We’re also available to assist with the claims process if and when you need a helping hand.
Personal Cyber Insurance in Edmonton
Are you curious about personal cyber insurance? Do you want expert advice in choosing a policy? Contact our brokers for advice.
