Understanding the Benefits of Cyber Insurance

May 3, 2022

Online financial errors can be a headache to resolve, and they are just one of the reasons cyber insurance exists.

Whether inadvertently, through simple error, or intentionally, as by a directed attack, your entire electronic presence is vulnerable to dangers of many kinds. This includes your financial connections, the integrity of your social media and personal identity components, all manner of electronic data (even homework!) and more.

Unheard of 20 years ago, cyber insurance is now offered by a growing number of underwriters. In a recent survey, over 60% of cyberattack victims indicated receptiveness to signing up for a new policy of this kind.

So are you personally at risk? Should you consider cyber insurance?

First off, the good news: some homeowners and renters policies already include provisions for varying levels of cyber insurance. This is more likely if your coverage is robust. Bare-bones plans are less likely to offer such coverage. Even so, at least ask if optional add-ons are available.

If cyber insurance is not available through this venue, a stand-alone policy might be warranted. Consider your risk in these scenarios:

  • A cyberbully maliciously attacks you on social media, causing both psychological harm (“I’m innocent–why me?”), expulsion from school, and withdrawn job offers. A police investigation may take months or years. How do you survive economically until then?
  • So you don’t review your credit card statements quite as often as you should, and you belatedly realize someone has charged $800 worth of Starbucks to your card. Most card issuers require notification within 60 days of errant charges. Beyond 60 days, and you’re on the hook yourself for every penny.
  •  An unknown entity introduces a virus to your computer, smartphone, WiFi router and IoT devices–repeatedly. As fast as you can clean them off, they are reinfected. It will cost to hire a Capitol Tech grad to resolve the problem. Who pays?
  • Photos of a ‘personal nature’ are accessed by a hostile entity, and you are then subjected to a ransomware attack. You can’t afford the ransom, and you don’t speak the language your adversaries are using to negotiate. You need a professional response team–fast.

In any of these cases, cyber insurance can assist in restoring order to your life. Benefits available include financial reimbursement, but also the resources of skilled professionals experienced in handling your specific problem.

Another benefit to securing a cyber insurance policy is the cyber risk assessment your insurer may offer. Most people are familiar with two-step verification and other safeguards for limiting damage to their online files. But the geography of prevention is changing constantly, and it stands to reason your insurer will be attuned to the current risks out there. After all, it’s in their interest to safeguard you from incurring a claim.

Interested in learning more about preventing or dealing with cyber attacks? Capitol Tech’s counterterrorism and cybersecurity programs both offer cutting-edge instruction in real world solutions to electronic malfeasance. This growing career field offers many opportunities, along with excellent financial rewards.

Works cited:

Metz, J. (2022, March 28). Do you need personal cyber insurance for cyberattacks? Forbes. Retrieved May 3, 2022, from https://www.forbes.com/advisor/homeowners-insurance/personal-cyber-insurance/

Six reasons why your school needs a cyber insurance policy: Independent School Management: Advancing school leadership-enriching the student experience. Independent School Management | Advancing School Leadership-Enriching The Student Experience. (2021, May 2). Retrieved May 3, 2022, from https://isminc.com/advisory/publications/the-source/six-reasons-why-your-school-needs-cyber-insurance-policy

West, C. (n.d.). The potential role of cyber-liability insurance in Data Breach Litigation. Colony West. Retrieved May 3, 2022, from https://text.123docz.net/document/4071607-the-potential-role-of-cyber-liability-insurance-in-data-breach-litigation.htm