Cyber insurance – what exactly is it?
The cyber insurance division was initially aimed primarily at small and medium-sized companies in order to cover the new types of claims arising from the increasingly dominant use of the Internet. However, this type of offer is now also available for private users. As the consumer association explains, most private cyber insurances revolve around cyberbullying and reputation damage. In such cases, insurance cover usually includes a case analysis, the deletion of problematic entries and legal and psychological advice.
The second major pillar of cyber insurance is damage caused by virus attacks on private computer systems. According to FinanceScout24, cybercriminals succeed time and again in attacking private individuals’ computers by sending spam emails or forged emails with infected attachments or dangerous links. If the insured person becomes a victim of malicious software, the insurance cover usually includes a financial allowance for data recovery and protection against illegal online shopping. In short, the insurance covers all damage related to the restoration of the IT system.
In addition to this regular protection, many cyber insurances also include so-called “assistance services”, i.e. direct assistance in the event of problems that are covered by the insurance.
This damage is already covered by ordinary insurance
Despite the additional advantages of cyber insurance, every household should think about whether the additional policy is actually necessary before taking out a contract. As FinanceScout24 reveals, the majority of the damage caused by cybercrime is already covered by conventional insurance. On the one hand, there is private liability insurance that every household should have. It takes effect if the insured person causes damage to third parties. In fact, especially with newer policies, this protection extends to everything that takes place on the Internet. For example, if you unintentionally forward an email that is infected with a virus and causes damage to the recipient, the liability insurance not only covers the resulting costs, but also protects the insured against unjustified claims for damages.
On the other hand, every household should have household contents insurance, which is normally intended for damage caused by burglary, fire, tap water or similar factors. But this type of insurance also offers protection on the Internet. Household contents insurance is particularly effective if the insured’s data is stolen and damage is caused to him as a result. This is particularly relevant in cases in which payment data is stolen via online banking or online shopping and misused for criminal purposes.
When do I need cyber insurance?
It is controversial whether cyber insurance is actually worthwhile for private individuals. For a company whose daily work process depends on the security and constant availability of sensitive data, such a special insurance can certainly represent an important and urgently needed protection. In the private sector, however, the consumer advice center does not currently need additional protection from cyber insurance. Instead, it is better to update your private liability, household contents and legal expenses insurance so that they also cover the threats threatening online.
However, if you are of the opinion that the protection that goes beyond conventional insurance and the assistance services represent a useful addition, you can take out such a policy with most insurers, according to FinanceScout24. However, one should be aware that financial losses are usually only covered up to a certain limit. According to the consumer advice center, for example, damage caused by misuse of identity is usually only covered up to an amount of 15,000 euros, and for Internet purchases it is only 3,000 euros.
Thomas Weschle / editors finanzen.net
Bildquellen: Song_about_summer / Shutterstock.com, BeeBright / Shutterstock.com
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