Cyber fraud is on the rise and it has become all the more important to insure ourselves and our hard-earned money from scamsters. Most of us use personal email and carry out financial transactions not just from our personal computers and smartphones but even from office computers and public Wi-Fi. Accessing personal information from different devices exposes us to all types of risks.
Cyber insurance is a sub-category of general insurance that covers businesses and individuals against internet-based liability and risks.
There are generally two levels of cyber liability coverage: first-party and third-party. First-party coverage encompasses direct losses to an organization or individual, whereas third-party coverage extends to claims and legal action taken by customers or partners.
Coverage differs by provider, but common coverage areas include data breaches, identity theft, and personal data theft. There are also the hefty legal fees, fines, and costs associated with recovering compromised data, repairing systems, restoring the personal identities of affected customers, and notifying customers of breaches. Coverage may also extend to scenarios like business interruption, extortion, or forensic investigation, meaning the costs associated with uncovering the cause and impact of an attack. The core idea behind cyber insurance is to help you recover from a data breach or identity theft by mitigating all the costs that crop up in the aftermath.
MYDIGITALPROTECTION enables insurers to more effectively protect their customers from online crime and identity-based fraud. For example, it can enhance a general insurance product by adding protection against the misuse of personal information.