With the increasing tendency of people to work from home, cyber crimes are rising. That’s why more people need a cyber insurance policy to protect themselves. Cybercriminals deprive people of their hard-earned money through internet banking fraud. They get access to your ATM card information fraudulently and empty your account.
A cybercriminal has many ways to enter your personal space and ruin your life. They can steal your identity or target your children. They may also block you from accessing some vital information. With a 24/7 connection to the internet through various devices, you are ever more susceptible to cyber-attacks.
Being a victim of cybercrime, you may have to pay extortion money or meet some other demand. So, you need to be extremely careful and protect yourself against this growing threat. One way to protect yourself is to get a personal cyber insurance policy.
How does a personal cyber insurance policy work?
If you have incurred financial losses due to the theft of digital information, this insurance policy can help you mitigate the damages. It works the same way as any other life insurance policy. It compensates you for the damages up to the limit of your policy.
How can I get personal cyber insurance?
If you have a homeowners insurance policy, you may also enjoy the privilege of personal cyber insurance. Some insurance companies only offer this option to those with a high-value home insurance policy.
What coverage do you get with cyber insurance?
This policy gives you protection against a range of cybercrimes, including:
Unauthorized online transaction: If the hackers have hacked your banking information and conducted some online transactions, this policy may help you recover your loss.
Cyberattack: In case the hackers have installed some virus on any of your devices, this policy can help you pay for its removal.
Cyberbullying may cover the cost you incur due to online harassment. If you lose wages or pay legal fees due to harassment by cybercriminals, your insurance company will compensate you for that.
Data breach coverage: If you were responsible for protecting a third party’s data but lost it due to a cyberattack, you will have to pay the affected party for its loss. If you have a cyber insurance policy, you won’t need to pay that amount out of your pocket.
Cyber extortion: Cybercriminals may block your access to some vital data and demand a certain sum to regain its access. This insurance policy can help you get the assistance of experts to recover your files. You may also retrieve the ransom you paid if the insurance company has approved it in the first place.
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What does a personal cyber insurance policy not cover?
While it does cover several aspects of your online space, it does not protect you from every possible loss. Below are the losses that may not fall under the protection of a cyber insurance policy:
Decreased valuation: If a cyberattack causes the loss of intellectual property and significantly reduces your company’s value, you get no compensation through a cyber insurance policy.
Upgrade cost: If you have decided to upgrade your systems after a cyberattack for better security, you cannot ask your insurance company to pay for these expenses.
Future loss: A cyber insurance policy does not cover you for any future loss. Like if you lose clients and potential revenue due to a data breach, an insurance company will not compensate you for this.
How much coverage do you need?
It depends on the sensitivity of data and the kind of protection you need. If your data is invaluable and you actively engage in online transactions, you need to get maximum coverage. You should know the cost if cybercriminals breach your data. You also need to identify how susceptible you are to a cyberattack.
How can you protect yourself from cybercriminals?
- Use two-step authentication for your emails and social media accounts.
- Don’t keep the same password over a long period. Change it periodically, like after every two months. Also, you need to use a strong password comprising at least 12 characters.
- Debit cards are a riskier way to pay for an online transaction. So, it’s better if you use a credit card for shopping online.
- Avoid saving your credit card information online.
- Never forget to install the latest updates on your system.