A personal cyber insurance policy is designed to provide financial reimbursement for costs associated with digital information theft and assets up to your cyber insurance policy’s limits.
Should I Consider a Personal Cyber Insurance Policy?
Even though we see news stories and articles about online cyberattacks on corporations and other businesses, we never think a cyberattack could happen to us. But think about it: we put ourselves at risk every day when we use the internet.
From computers and smartphones to connected home devices, we use and rely upon these technologies. In turn, this creates opportunities for cyber attackers to infiltrate your home. They access your data, steal your information, extort money, and commit fraud in your name.
That’s why we suggest looking at Personal Cyber Insurance, especially as we spend more time online and increase our online shopping for the holidays.
There are different types of personal cyber protection to consider.
Types of Personal Cyber Insurance Protection
Cyberattack protection is designed to pay to recover data and restore systems that have been lost or damaged due to a cyberattack — including attacks involving malware or unauthorized use of owned or leased computers, mobile devices, and connected home devices. Covered devices include computers, security monitoring systems, smartphones, smart appliances, tablets, thermostats, and wi-fi-enabled devices.
Cyberextortion protection is designed to provide payments and professional assistance in responding to cyber extortion demands based on a credible threat to damage, disable, deny access to, or disseminate content from devices, systems, or data, including ransomware attacks.
Online Fraud coverage is designed to cover online fraud that results in a direct financial loss, including counterfeit currency, forgery, illegal bank transfers, credit card transfers, and phishing schemes.
Picture This: Real-Life Scenarios
Perhaps you think that a cyberattack would never happen in your household. We’d like to share a few real-life scenarios to consider.
Scenario #1: Trojan Horse Sneaking through an Email
The insured opened a file attached to an email that appeared to be from an old friend. The attachment turned out to contain a virus that infected their computer.
Result: A technical support expert reformatted the hard drive, reinstalled the operating system, and restored data from a backup.
Total Covered Loss: $1,500
Scenario #2: Dream Vacation Turned Nightmare in a Rental Scam
A family planned their dream vacation to the Cayman Islands. Online, they found a beautiful rental home with a private beach and hurried to book their stay. They paid the deposit, but several days passed without any communication from the rental company.
Upon further investigation, the family discovered the home they booked didn’t exist.
Result: The family carried personal cyber coverage, which paid for the fraudulent $1,000 “deposit”.
Total covered loss: $1,000
Real-Life Scenario #3: Intercepted Emails, Stolen Funds
The insured received an email from his sister in Paris, requesting a loan. He wired almost $2,000 to her. A few days later, the insured received a second email requesting an additional $4,700, which he also sent. When the insured called his sister, she told him that she hadn’t received either payment. At that point, the insured realized that his emails had been intercepted. He called his bank to stop the wire transfer, but the money had already been withdrawn.
Result: The insured’s Personal Cyber Protection policy covered the cost of the wire transfers as well as the costs to restore the insured’s computer system.
Covered Online Fraud Loss: $6,000
Covered Cyber Attack Loss: $250
Now’s the time to defend yourself from personal cyberattacks.
Contact Mason-McBride today to discuss the advantages of this type of insurance coverage.
Did you know we also offer commercial cyber insurance? Here’s an update on 5 ransomware developments you need to know right now.
As always, we are here to help you, your employees, and your business with all your insurance needs — from commercial insurance to group benefits to personal insurance. Thank you for allowing Mason-McBride to serve you!
Many thanks to The Cincinnati Insurance Companies for the scenario information.
Disclaimer: The information, examples, and suggestions presented in this material have been developed from sources believed to be reliable. However, this is not legal advice, and The Cincinnati Insurance Companies and Mason-McBride cannot accept responsibility for its applicability to your specific circumstances: no one should act on the basis of this article without first seeking appropriate professional advice, including advice of legal counsel, based on a thorough examination of their individual situation, relevant facts, laws, and regulations. This material is for illustrative purposes and is not intended to constitute a contract.