Private cyber insurance - who needs it and what it does

In recent years there have been repeated cases of cybercrime, whether with politicians or private individuals. There are security tips for everything to do with online security. But what if a cybercrime attack occurs despite the best security measures? In such cases, cyber insurance comes into play and protects you from high financial losses. But what exactly does cyber insurance actually include, and for whom is it useful? We will take a closer look at this in this article.

What does cyber insurance include? Cyber insurance is still relatively new compared to other insurance products. This is why not every insurer offers cyber insurance. These are some of the areas that cybercrime covers:

Online shopping: Most people love shopping online. Internet purchases and sales can be carried out easily and from home. As quickly as it is possible to shop there, it can also lead to cases of fraud. Example: You buy in advance in an online shop. You will receive an order confirmation by email, information about the planned delivery time, and confirmation that the payment has already been made. Nevertheless, the package never arrives because it is a so-called fake shop. The worst part is that your money is gone. Because since you have verifiably instructed a payment, the bank will not cover the damage. With the carefree online cyber insurance, you are protected in such a case. Internet purchases and sales can be insured so that you are entitled to compensation.

Identity abuse: You know this from movies, but unfortunately, identity abuse on the Internet is not that far from reality. Imagine you want to spontaneously book a holiday bargain on the Internet, but you don't have your credit card ready. Therefore, you ask one of your roommates to send you your credit card details by email. A virus on one of the two computers reads the credit card details by cybercriminals.

The result: There are high transactions on the account statement that you have not made. Of course, you block the credit card immediately - but the bank refuses to refund the money.

Whether in such cases or when spying on passwords and access data from computers, smartphones or ATMs: the cyber insurance reimburses you for identity fraud, no matter whether it happened with credit cards or electronic payment systems such as PayPal.

Cyber insurance helps with targeted credit card fraud. Because banks usually assume the costs for unauthorized transactions that you discover on your credit card statement.

Data recovery Personal data such as pictures, business documents, etc. can suddenly disappear or be unusable through malware. Even if you often plan to make a backup copy of all files on an external disk (which is really advisable!), You often don't do this with every new document. Cyber insurance companies offer a financial replacement here.

Psychological counseling for cyberbullying: One area that not all cyber insurers have yet covered is cyberbullying. Unfortunately, cyberbullying is on the rise, so that reputations or defamation can occur on social media platforms. This form of bullying is increasing, especially among young people. Those affected may no longer dare to go to school. Personal rights are paramount and should be protected. If these are violated on the Internet, those affected should seek care from an experienced psychologist.

Protection through security software An integrated dark web screening shows which of your personal data is circulating on the dark web. This can be, for example, data on your bank account or your identity card ID. If it is found on the dark web, you will be alerted immediately. In addition, you will receive security tips on how to proceed so that your personal data is protected against misuse in the future.

What to do first if you are a victim of cybercrime? If you notice that a cyber-attack has been carried out on you, change your passwords immediately on any online portal that contains sensitive data about you. If it is a credit card fraud, then you should have the credit card blocked in order to avoid the worse scenario. With cyber insurance, you then dial the insurer's emergency hotline to discuss the next steps. You will be offered help with blockages, financial losses, cyberbullying, etc. or you will be forwarded to specialists.

Do I even need cyber insurance? Whether cyber insurance makes sense for the private individual depends entirely on the individual's security needs. If you want to be on the safe side and you want to protect sensitive data, then cyber insurance definitely makes sense.

In principle, some security precautions can also be taken in advance so that cybercrime does not have to occur. Unfortunately, this cannot be completely prevented. There is no guarantee that cyber insurance will not cause a claim in the first place. In the worst-case scenario, however, it can protect against financial damage or restore lost data.

That is why cyber insurance is particularly useful for companies and the self-employed who work with confidential data and are dependent on it. Smaller companies should also think about a deal, especially if sensitive customer data is being handled.

Conclusion If you like to have a high level of data security or if there is sensitive data on your computer, it is worth taking out cyber insurance. Even if you often do online shopping or are logged into a large number of online portals with your data, you should take a closer look at cyber insurance.

Before doing this, check whether some components are already included in one of your insurance policies. Some of these are also included in personal liability insurance. Example: If you accidentally send a virus-infected email that causes damage to a third party, liability covers the damage costs incurred by the third party. The damage you suffer is only covered by cyber insurance.

For full protection, however, special cyber insurance is advisable, as you will receive expert help and all-round protection in many online areas in the event of a claim.