How does personal cyber insurance work?īroadly speaking, a personal cyber insurance policy provides financial reimbursement for the costs associated with the theft of digital information and assets up to your policy's limits. This provides individuals with more than enough protection for the average cyber crime cost at an affordable price. This endorsement, named Cyber Event, Identity Restoration and Fraud Loss Coverage, also covers policyholders for up to $50,000 for identity restoration expenses and fraud losses. However, as the personal cyber insurance market continues to expand, more cyber policies with reasonable limits could be an affordable supplement to individuals' insurance coverage for this rising threat.įor example, State Farm's aforementioned personal cyber insurance endorsement covers $15,000 in combined cyber extortion and cyber attack damages for $25 per year. Some other large insurers, like Allstate and Travelers, offer the option for a level of identity theft protection. Several smaller companies offer it as well, including some as part of high-value home insurance policies, which have target clients with home values approaching $1 million or more. State Farm is a rare major insurer offering cyber insurance to individuals and their families as an add-on to its standard home insurance policies. That comes out to an average cost of over $5,300 per cyber crime. In 2020, the FBI's Internet Crime Complaint Center received almost 800,000 complaints of cyber crimes, with a total estimated cost of $4.2 billion. Given the rise in frequency and cost of cyber crimes, individuals should consider purchasing some level of personal cyber insurance if their homeowners insurance provides the option. Should individuals buy personal cyber insurance? Which insurance companies sell personal cyber insurance?.How does personal cyber insurance work?. ![]() Should individuals buy personal cyber insurance?.These higher-value endorsements currently range in price from a few hundred dollars per year to over a thousand, with higher prices reflecting the broader protection and higher limits offered under these policies. In addition to State Farm, personal cyber insurance is offered as an endorsement from smaller insurers, such as Cincinnati Insurance, Acuity and Arbella, and high-value homeowners insurance policies from insurers like AIG, Chubb and PURE. This coverage can be added to a State Farm homeowners insurance policy for just $25 per year. In recent years, the company upgraded its identity theft coverage to include protection from cyber extortions and cyber attacks. One major insurance company offering personal cyber insurance is State Farm. For now, this market is in its infancy, but there are some ways consumers can get personal cyber insurance through their home insurance policies. One way to protect yourself financially against these risks is by buying a personal cyber insurance policy, part of a growing insurance market for cyber protection. ![]() And the theft of personal data can have financial consequences, with cyber crimes costing individuals over $5,300 on average in 2020. As technology has become increasingly integrated into people's lives, the risks that sensitive personal data could be compromised, including Social Security numbers and bank and credit card information, has continued to rise.
0 Comments
Leave a Reply. |