Your “Internet of Things” — the network of smart TVs, video gaming consoles, refrigerators, and thermostats that simplify your life – poses a security risk. To mitigate the financial danger of someone breaking into your home network or installing malware on your computer, you should consider personal cyber insurance.
What is personal cyber insurance?
Personal cyber insurance can aid in the recovery from data breaches, online fraud, cyberbullying, and other cybercrimes. Assume you click on a link in an email that downloads dangerous software onto your computer, granting a hacker access to your data. Personal cyber insurance may repay you for skilled IT services used to retrieve your data or even assist you in paying a ransom if the hacker holds your contents hostage.
Personal cyber insurance, like other types of insurance, cannot prevent problems from occurring; nevertheless, it can help you recover if they do.
What personal cyber insurance covers
Each personal cyber insurance is unique, but you may find coverage for topics such as:
- Cyberattacks. If malware infects your laptop or someone hacks into your home network, insurance may cover the costs of system restoration and data recovery.
- Cyber extortion. Cyber extortion occurs when someone holds computer access, files, or other data hostage in return for a payment. Personal cyber insurance typically provides access to professionals who can assist you in evaluating and responding to this type of demand. If they determine that the threat is credible, your policy may repay you for the ransom payment, up to your coverage maximum.
- Identity theft or online fraud. This category may include unlawful bank or credit card transfers, counterfeit money, check forgeries, and phishing attempts. Some insurance firms provide identity theft insurance as a distinct add-on, while others mix it with personal cyber coverage. Learn more about identity theft insurance.
- Data breaches. Personal cyber insurance can aid if someone takes your personal information, uploads it online, or spreads false information about you. For example, it may pay for legal bills, missed wages, and a forensic IT investigation to determine what went wrong.
- Cyberbullying. If someone is harassing you or your child online, personal cyber insurance can help you pay for things like counseling, temporary relocation, private tutoring, or social media monitoring.
- Deceptive transfer fraud. If you send money to a criminal by mistake, believing you are assisting a family member in need or paying a genuine company, personal cyber insurance can reimburse you for the money lost.
It is important to note that insurance normally only covers new incidents, so you cannot purchase coverage the day after someone hacks your computer to assist you in cleaning up the mess.
How much does personal cyber insurance cost?
Personal cyber coverage can be reasonably priced, beginning at less than $3 per month when added to an existing homeowners or renters insurance policy. The cost is determined by where you purchase the policy and the level of coverage you select.
How to get personal cyber insurance
Some insurance firms offer personal cyber coverage as an optional add-on to their homeowners, renters, or condo policies. Alternatively, you can get a standalone personal cyber policy from companies like NFP or Blink.
Here’s a summary of some of your alternatives.
AIG
You can add the Family CyberEdge endorsement to your AIG homes policy to protect against cyberattacks, cyberbullying, and cyber extortion. If a cybercrime damages your reputation, the coverage may cover the cost of hiring a crisis management service. It also covers identity monitoring services for two members of your household, regardless of whether you have filed a claim.
Blink
If your current insurance does not offer personal cyber coverage, try Blink’s stand-alone policy. The company provides three levels of coverage, which range from $10,000 to $100,000. Policies address a wide range of issues, including cyber extortion, identity theft, financial fraud, and breach of privacy. Blink will pay for your relocation if you are unable to access your home due to an attack on its automation system. It may also pay to repair or replace devices destroyed in a cyberattack.
Chubb
Chubb, Blink’s parent company, includes certain identity theft and cyber coverage in its normal homeowners insurance policy, which can be used to repair damaged electronic data or restore your identity. Add a Masterpiece Cyber Protection policy for higher limits and coverage for cyberbullying, cyber extortion, and financial loss as a result of a cyberattack.
Cincinnati
You can add $25,000, $50,000, or $100,000 of personal cyber insurance to your Cincinnati homeowners, condo, or renters policy. (Some policyholders may be able to get a $250,000 maximum.) The policy can assist you with recovering data and home systems following a malware or other assault on your computer, phone, or other smart device. It can also help with cyber-extortion and online fraud.
Farmers
Farmers’ Cyber and Identity Shield package covers online fraud losses, identity theft recovery, and removing incorrect information broadcast about you on the internet. If your child is the victim of cyberbullying, Farmers can assist with expenses such as counseling and tuition. You can also receive assistance with eliminating ransomware from your PC.
The Hanover
The Hanover’s personal cyber add-on includes information on recovering from a hack, preventing various sorts of online fraud (including identity theft), and coping with cyber extortion. It also covers private tutoring, legal fees, and other expenses incurred if your child is bullied online. The Hanover provides coverage amounts of up to $100,000, as well as credit monitoring following a claim.
Mercury
Mercury’s Home Cyber Protection endorsement is available as an add-on to homeowner and renter policies. You can select a $25,000 or $50,000 maximum for cyberattacks, online fraud, and cyber extortion. The company also provides consultations with cyber-extortion professionals. The deductible is $500 per incident.
Nationwide
Nationwide’s identity theft protection includes software that helps secure your online data from ransomware, malware, and phishing. It can also assist with data recovery, device cleanup, and home network restoration following a hack. Security professionals are available by phone to provide advice and support.
NFP
NFP, an insurance broker, offers a standalone personal cyber policy called DigitalShield that covers eight different eventualities, including cyberbullying, identity theft, and ransomware. The policy also provides resources for dealing with cyberstalking and will pay to restore smart devices or wearables that have been targeted by a cyberattack. Coverage limitations range between $100,000 and $1 million.
Pure
Pure, which insures high-value residences, provides coverage levels ranging from $100,000 to $2 million. You can add its cyber endorsement to your homeowners policy to protect against both online and offline fraud, as well as cyber extortion and cyberattacks. If a breach of your personal data exposes other people’s information, Pure will assist you in notifying them and even paying for your legal defense if they sue you.
Safeco
Safeco provides a complete Cyber Protection certification that addresses online fraud (including identity theft), cyberattacks, cyberbullying, data breaches, and cyber extortion. You can also sign up for credit and dark web monitoring to be notified if your information slips into the wrong hands. The endorsement is accessible in some, but not all, of the states that Safeco serves.
State Farm
Most states allow you to add State Farm’s Cyber Event, Identity Restoration, and Fraud Loss endorsements to your homes, renters, or condo insurance policy. It will include data recovery following a cyberattack, financial loss from online fraud, cyber extortion response, and identity theft case management. The coverage costs $25 per year.
USAA
USAA works with Blink to provide personal cyber insurance, therefore its offerings are identical to those of a standalone Blink policy. Policies protect against identity theft, data breaches, cyber extortion, and other threats. USAA offers insurance to active military personnel, veterans, and their families. Read our USAA home insurance review to learn more about the company.
Personal cyber coverage may also be available from smaller regional insurers like Integrity, which operates in three Midwest states, and Safety, which serves parts of New England.
How to prevent cyberattacks
You can decrease the chances of an attack by:
- Using two-factor authentication to access financial, email, social media, and other accounts.
- Downloading software updates as soon as they become available. (Setting automatic updates can assist with this.)
- Creating complicated passwords that are unique to each account, or utilizing a password manager such as LastPass or Dashlane.
- Ensure your internet router includes a firewall and encrypts your Wi-Fi.
- Using one network for linked appliances and devices, and another network for laptops, tablets, and smartphones. This ensures that if someone hacks your device network, they will be unable to access your accounts.
