What Is Cyber Protection Insurance & Do You Need It?
Did you know that identity theft affects more people in Australia than any other crime? Almost 22% of Australians have been a victim of identity crime over the course of their lives (AIC, 2020).
We share so much information on the internet, from submitting our bank details on ecommerce sites to all of the personal anecdotes and photos we share on social media platforms.Regardless of your privacy settings on websites and apps, anyone that uses the internet and a digital device is vulnerable to cyber crime. As we continue to add more technology and devices to our life and our homes, the risk of cybercrime increases.
The cost to respond to and recover from cyber attacks can be substantial and have significant financial repercussions - not to mention the emotional stress it can cause.
What Is Cyber Insurance?
Cyber insurance covers you, your business (if applicable) and your family against the impact of cyber attacks and cyber crime including hacking, viruses, identity theft and malware. It can also cover cyber bullying, cyberstalking and cyber harassment.
Do I Need Cyber Insurance?
As the amount of websites, apps and time we spend online increases, so too does the number of cyber risks we face. Cybercrime, cyberbullying and cyber attacks can have devastating consequences and repairing the damage can be expensive.
Although cyber insurance doesn’t have the power to stop cyber criminals from preying on your information, it can protect you and your business against financial losses and help you resolve the issues faster.
What Are Some Examples of Cyber Insurance Claims?
Cybercrime is an imminent risk for anyone that uses a computer, especially with the sophisticated spam emails and viruses hackers can create nowadays.
Below are some examples of common cyber claims and how cyber insurance can minimise the damage.
Example 1: Identity theft
An example of identity theft is when you receive an email from a social media or ecommerce platform requesting you to verify some information about your account by clicking on the attached link. This link actually turns out to be malware and used by cybercriminals to steal your personal information.
Personal cyber insurance compensates you for the costs to restore data, remove the malware and secure your personal computer network. It can also cover the costs incurred due to any time you had to take off work as a result of the identity theft.
Example 2: Ransomware virus
An example of ransomware is when someone receives a seemingly legitimate email with an attachment. When you click on the attachment a virus takes over your computer and prohibits your access to all important files. The cybercriminal will ask you to pay a ransom (often in the excess of thousands of dollars) to get access to the files.
A personal cyber protection will cover the costs to hire a cyber specialist to remove the virus and give you full access to the files they blocked.
How Much Does Cyber Insurance Cost?
The cost of a cyber protection insurance premium depends on a number of factors including:
- Data access in your household/organisation
- The level of your network security
- Coverage limits
- Claims history
Get a Cyber Insurance Quote Today
At Insurance HQ, we understand the cyber risks involved for individuals and businesses. Our brokers will take the time to get to know you and your unique requirements in order to find the most suitable policies. With access to over 170 insurers in Australia and beyond, we are also confident that we can find great cover at affordable prices.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Adam Pile.