As a homeowner, you are more connected than ever – your phone, computer, network, security system, even household appliances and equipment. These connections have improved our daily lives, but they have also opened up homeowners to a wide new range of Cyberattacks, extortion, fraud and data breaches. Adding Cyber Insurance to your homeowners policy can help reduce the risk posed by the modern reliance on data.
Some of the most common types of Cyber claims include:
- Cyber Attacks – A targeted attack or unauthorized access or use of a computer or connected home device, including viruses and malware
- Cyber Extortion – A claim for compensation based on a credible threat to disable, damage or deny access to your devices, systems or data, including an offer to restore functionality in exchange for payment
- Fraud – Unauthorized use of personal information including credit cards, checks or account numbers. This may include accepting counterfeit currency or falling victim to criminal fraud.
- Data Breach – Theft, loss, release or publication of personally identifiable information in your care, custody or control.
Cyber Insurance Endorsements may include the following coverages:
- Identity Fraud Expansion Grants and Recovery Support
- Data Recovery and System Restore
- Credit Card Fraud, Counterfeiting, Cybercrime
- Cyber 1969  ] Legal Costs for Cyber Protection and Reimbursement of Liabilities
If you have not discussed your individual cyber risk, an experienced personal insurance line consultant from R&R can explain the various coverage options and limitations available to you. We can help design a plan to meet your individual needs.
4 Examples of Real Claims
- Cyber Attack An insured person opened a file in an email he received that contained a virus. The virus affected their computer, which required the need to hire an expert to reformat the hard drive, reinstall the operating system, and restore data from a backup.
Paid loss after deductible: $ 1200
- Cyber Extortion An insured received a redemption message on their computer after noticing that all files were locked. The email required a payment of $ 2,000 to receive the decryption key. If the insured did not pay within three days, the price would go up to $ 3,000. After that, the decryption key would be destroyed and all chances of accessing the files would disappear forever. After consultation with an expert and approval of the insurance company, the insured decided to pay redemption.
Paid loss after deductible: $ 1,500
- Fraud An insured person received an e-mail that appeared to be from a grandchild stating that he had been in a car accident and had problems. He was facing a crime and needed payment for a lawyer. 20 minutes later, the insured received a new email from someone who identified himself as his grandson's lawyer, including an accident report and the costs of covering the damage. According to the email, the injured person agreed to accept $ 5,000 to cover the costs. Grandfather was told that the victim would sign an exemption as soon as that amount was connected and the insured's grandson would go away with a clean record. The money was sent according to the instructions. The next morning, the insured called his grandson and was told that none of this actually happened;
Paid loss after deductible: $ 4500
- Data Breach An insured volunteer at her elementary school and one of her responsibilities is to keep teachers aware of students' birthdays and lunch account balances. The lunch account information contains credit card numbers and other personally identifiable information. She keeps track of all this information in a spreadsheet stored on her personal tablet. She does not secure the tablet with a password so that critical data is unencrypted. When she was on a trip, she lost her tablet. After consulting with her lawyer, the insured is told that she must inform people that their personally identifiable information was compromised.
Paid loss after deductible: $ 4,200