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What Is Personal Home Cyber Protection Insurance

connected smart home concept - cyber home protection insurance provider newton massachusetts

As technology has become increasingly integrated into our lives, the risk that confidential personal data could become compromised, including Social Security numbers, health data, and bank and credit card information, has continued to rise. The frequency and severity of attacks increased exponentially, and the complexity and sophistication has also become incredibly advanced. Even the most tech-savvy of us are at risk.

Theft of personal data can have major financial consequences, with cybercrimes affecting individuals costing well over $4,000 on average. In 2020 alone, over 155.8 million individuals were affected by data exposures - that is, the accidental revelation of sensitive information due to less-than-adequate information security.

Consumers reported losing more than $3.3 billion to fraud in 2020, up from $1.8 billion in 2019. Almost double in just a single year. Nearly $1.2 billion of losses reported last year were due to imposter scams, while online shopping accounted for about $246 million in reported losses from consumers.

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.

Until very recently there have not been any real options for personal cyber insurance as policies were limited to business exposures. However, insurance carriers have begun to add this invaluable coverage for Individuals looking for personal cyber protection as an add-on to homeowner’s insurance policies.

What is Home Cyber Protection?

Home Cyber Protection provides coverage for cyberattacks, data breaches, cyber extortion, online fraud, and in some cases cyber bullying.

Different types of Cyber Protection:

What is a Cyberattack?

A Cyberattack is an attempt by hackers to damage or destroy a computer network or system.

  • Example: You are hooked up to a public wi-fi and have inadvertently downloaded a virus causing you to lose all your photos.

What is Cyber Extortion?

Cyber Extortion is a crime involving an attack or threat of an attack. It is also coupled with a demand or request for money otherwise known as a ransom to avert or stop the attack:

  • Example: You are on your computer or iPad, streaming a movie or downloading a game when suddenly everything freezes. You get a message that pops up and says, “in order to resume, you must pay X amount of money $$, click this link”.

What is a Data Breach?

A data breach is an incident wherein information is stolen or taken from a system without the knowledge or authorization of the system's owner.

  • Example: You are preparing your invitations for your wedding; you made an excel spreadsheet with all your guests addresses and phone numbers. You happen to leave your computer at Starbucks and when you remember - it was too late – the laptop was gone. You remembered that you backed up that data on your google drive or iCloud, but now there is a data breach, and someone has access to all the personal information of your wedding guests.

What is Online Fraud?

Internet fraud is a type of cybercrime fraud or deception which makes use of the Internet and could involve hiding of information or providing incorrect information for the purpose of tricking victims out of money, property, and inheritance.

  • Example: You receive an email from your bank stating they need to verify your account number, date of birth etc. You click on the link and provide the info, only later to find out it was not really your bank that sent the email.

What is Cyber Bullying?

Cyberbullying is the use of electronic communication to bully a person, typically by sending messages of an intimidating or threatening nature..

  • Example: Your child is on a social media platform, they post a picture and immediately start getting comments, some nice and others not so nice. This has become a constant problem and has happened repeatedly where your child is now traumatized and needs to seek treatment for mental health.

How does Home Cyber Protection coverage work?

Coverage applies to all types of home policies (renters, condo unit owners, and homeowners)

  • Coverage is for home exposure only- no business or professional coverage even if business exposure is endorsed on the policy

What can Cyber Protection Coverage potentially pay for?

  • Computer Attack coverage
    • System Restoration and data recovery
  • Connected Device Attack Coverage
    • Covers system restoration and data recovery on a connected device.
  • Expert counsel on responding to extortion threats
  • Payment for device, system, or data held hostage.
  • Coverage for a fraud event that results in a direct financial loss.
    • NO coverage if the fraud is between a family member or other insured, current, or former spouse, or domestic partner.
      Forensic It Review: Professional review to determine nature and extent of data breach.
  • Legal Review
    • Professional legal counsel review of the data breach.
  • Cyberbullying coverage:
    • Private Tutoring expenses
    • Alternate schooling relocation
    • Counseling services
    • Social monitoring software or apps
    • Related legal expenses

We provide personal cyber home protection insurance in Newton, Needham, Wellesley and all of Massachusetts. Contact Kovalev Insurance today and request a complimentary consultation to ensure your data and virtual assets are properly protected.

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