Do I Need Cyber Insurance?
Cyber insurance sounds like something futuristic, or the type of coverage that large businesses should be concerned about, rather than individuals. Yet, people are being impacted every day. We've heard many individual stories of identity theft or attempted fraud due to various kinds of cyber attacks over the past several months. People are asking if their insurance can help and they call looking for guidance. Unfortunately, home insurance does not automatically cover cybercrime specifically, but there are insurance coverages available that do. Here's what you need to know about cyber attacks and how to get insurance coverage for cybercrime.
Cyber attacks are not always obvious. You could be hacked and not know even know about it. Sometimes you might find out that your data or personal information has been accessed because you see a charge on your credit card or get an alert from credit monitoring services saying a new account has been opened in your name. Other times it may come to light when your friends or family ask you if you sent them an email, and you did not.
How much damage a cyber criminal can do before you become aware is hard to know. The long-term impact may only become evident several months down the line.
How much damage a cyber criminal can do before you become aware is hard to know. The long-term impact may only become evident several months down the line, such as in the case of this Calgary man who was surprised to get a T4 for a COVID-19 government benefit he never applied for nor received.
7 Reasons to Buy Personal Cyber Insurance
Although not all cyber policies are alike, there are several types of coverage you should look for in a policy.
Here is a list of seven good reasons to consider purchasing cyber insurance, which also highlights the features of a good cyber insurance policy for individuals.
- Support and guidance if you find out you've been hacked to help minimize damage
- Identity theft and fraud coverage
- Reputation protection and professional crisis management
- Reimbursement of monies stolen from an account plus coverage for ransom monies you may have to pay to regain access to your computer, systems or smart home
- Cyberbullying and cyberstalking coverage
- Analysis of damage done by a hack, removal of malicious software or code, and system or file restoration (or replacement)
- Access to professionals, such as lawyers, psychologists, relocation assistants, PR experts to help you recover and regain your peace of mind.
Does Home Insurance Cover You for Cybercrime?
No. Home insurance does not include coverage for cybercrimes. Although some home insurers may offer endorsements to add some cybercrime coverage elements to a policy for an additional cost, it is not part of a standard homeowner policy. You would have to request coverage and pay an extra fee in most circumstances.
When home insurance does offer coverage, it is usually tied in with your home policy. Therefore, there are some coverages that will be limited or excluded. For example, most home cyber coverages do not include many of the family protections like cyber bullying, smart home device coverage, or if you own multiple properties, these may be excluded. Another common exclusion is no coverage if you travel to dangerous or high-risk locations.
Warning: Cyber insurance offered through home insurers may have limitations on coverage, a stand-alone cyber policy can offer broader protection for the whole family (at a lower price too!)
Some home insurance policies offer coverage as add-on endorsements but charge for different elements of coverage individually. You might have coverage for a cyber attack, but it might not cover resulting expenses beyond the basics. This can leave you at a loss during the recovery period of a cyber event. One example is cyberbullying or stalking. These kinds of events happen more frequently than you would think. For example, one study showed that over 30% of young people have experienced cyberbullying. Getting help in these situations is vital to protect your family.
Costs of cyber event cleanups can also become quite expensive and are another reason to consider purchasing a stand-alone cyber policy built to cover all kinds of cybercrime in one comprehensive package.
How to Get Cyber Insurance to Protect Your Home and Family?
No one should have to go through the effects of a cyber attack alone. Cyber insurance is available through our proprietary DigitalShield program to ensure that we can help you protect your home, family, and lifestyle when something happens.
In developing this program, we researched the available products on the market in North America. We developed a comprehensive solution addressing all areas of cybercrime affecting individuals and families today at an affordable cost.
One policy covers all members of your household and any locations you own worldwide.
Get a cyber insurance quote today and protect you and your family. Coverage is available for amounts starting at $100,000 for less than $1 a day.