Understanding Cyber Insurance

In recent years insurance companies have begun promoting cyber insurance coverage on a larger scale. Initially available for small businesses to protect against data breaches, an increasingly digital landscape has paved the way for personal cyber security needs as well.

So how does the general consumer navigate cyber protection and how do you put a price on digital security?

Cybersecurity is widely considered a “must-have” for internet users as the extensive amount of personal data stored online continues to grow exponentially. It is estimated that a cyberattack happens every 39 seconds and, in 2022, the cyber attack’s monetary damage passed $6 trillion. While large technology companies like Microsoft and Apple spend billions of dollars collectively fighting these attacks, consumers taking control with measures like personal cyber security insurance has become more of a necessity.

Typically, available as an endorsement on a customer’s home, condo or tenant policy, personal cyber protection offers coverage and services for risks like online fraud, computer attacks and cyber extortion. Many insurance companies offer protection on computing devices like desktop, laptop or tablet computers, as well as other connected home devices such as Wi-Fi routers, smartphones, smart thermostats, entertainment systems and in-home cameras. These endorsements can provide coverage limits up to $100,000, and in some cases, even higher.

With these policy endorsements becoming more popular, it is important to ask your insurance agent about what your insurance provider offers.

In addition to these coverages, AAA also offers proactive protection with the Protect My ID membership benefit. AAA members can enroll for free for the basiclevel of credit monitoring with options to upgrade. Visit AAA.com/IDTheft.

Paige Scott is director of insurance operations and financial services for AAA Ohio.

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