Beyond Identity Theft: The Need for a Personal Cyber Insurance Policy

As our lives become more connected, the risks of online attacks extend beyond simple identity theft. A dedicated **Personal Cyber Insurance** policy is an add-on or stand-alone product designed to cover the high costs associated with digital threats like ransomware, data recovery, and cyberbullying that affect individuals and families.

What Personal Cyber Coverage Protects

While standard **home insurance** (Article 1) may cover theft of physical items, it rarely covers the costs of digital compromise. A personal cyber policy typically includes:

**Cyber Extortion (Ransomware):** Covers the cost of paying a ransom (within limits) and professional negotiation fees to recover locked data.
**Data Recovery:** Pays for experts to restore your computer systems, photos, and files following a hack or virus.
**Cyber Fraud:** Covers losses resulting from fraudulent transfers of money from your bank account or investment accounts due to a computer security failure.
**Cyber Bullying/Harassment:** May cover expenses (like psychiatric treatment or legal fees) related to online harassment targeting minors or adults.

The Gap Between Personal and Identity Theft Insurance

**Identity Theft Insurance** (Article 18) focuses on the *financial restoration* of your credit and identity. **Personal Cyber Insurance** focuses on the *technical restoration* of your hardware, software, and data, as well as covering extortion payments.

Modern Risk: The average cost of recovering from a sophisticated ransomware attack, even on a personal level, can quickly exceed $10,000, making this new insurance type increasingly vital.

For high-net-worth individuals or families highly dependent on smart home technology and digital devices, a **Personal Cyber Insurance** policy offers comprehensive protection in an increasingly risky digital environment.