With the increased use of digital devices, the number of cyberattacks has steadily risen.
Cybercriminals are always devising new ways to gain access to private information such as social security numbers, bank account details, and credit card numbers. For this reason, personal cyber insurance has become increasingly essential.
What is Personal Cyber Insurance?
Personal cyber insurance is an insurance policy that covers the cost of damages and expenses arising from a cyberattack. It covers a wide range of cyber risks, such as identity theft, data breaches, and cyberbullying. This type of insurance can protect individuals and families from financial losses that can arise from cybercrime.
How to Carry Personal Cyber Insurance
Evaluate Your Risk
The first step to purchasing personal cyber insurance is to evaluate your risk. The level of risk depends on how much personal information you share online, how often you use digital devices, and the type of accounts you have. If you have an online bank account, invest in cryptocurrency, or have a social media account, you are at a higher risk of cybercrime.
Choose the Right Policy
When choosing a personal cyber insurance policy, it's important to select one that fits your needs. Some policies may not cover all types of cyber risks. Some may only cover data breaches or identity theft. It's essential to read the policy carefully and understand what is covered and what is not.
Determine Coverage Amount
The coverage amount should be enough to cover the financial losses you may incur in the event of a cyberattack. The cost of damages and expenses arising from a cyberattack can be significant, and you want to make sure that you have enough coverage.
Understand Exclusions
Exclusions are the types of cyber risks that the policy does not cover. For example, some policies may not cover losses that arise from a cyberattack that was caused by an employee of the insured. It is important to read the policy carefully and understand the exclusions before purchasing a policy.
Compare Insurance Providers
Just like with any other insurance policy, it is important to compare providers. Look at the policy coverage, exclusions, and cost. You may also want to look at the provider's reputation and customer reviews. It's also a good idea to ask for recommendations from friends and family.
Keep Your Digital Devices Secure
While personal cyber insurance can protect you from financial losses, it is important to take steps to prevent cyberattacks from happening in the first place. Keep your digital devices secure through strong passwords, update your software, use a password manager, and do not click on suspicious links. You may want to consider using a personal virtual private network (VPN) to protect your online activities.
Report Cyberattacks Immediately
In the event of a cyberattack, report it immediately. The insurance provider may have specific requirements for reporting cyberattacks. Failure to report a cyberattack may result in the denial of your claim.
Keep Documentation
If you become a victim of a cyberattack, it is important to keep documentation of the incident. This may include emails, receipts, and any other relevant information. This documentation will help support your claim and increase the likelihood of a successful claim.
Personal cyber insurance is an essential tool to protect individuals and families from financial losses that can arise from cyberattacks. You can check with your insurance provider to see what coverage they offer, if any. The following is a comparison of companies, other than Life Lock, who can protect you as well. https://www.usnews.com/360-reviews/privacy/identity-theft-protection
