Cyber/Fraud Insurance FAQs

What exactly is cyber insurance?

 

  • While the term cyber may bring to mind things that are more conceptual than physical, living our lives and running our businesses with the assistance of the internet opens us up to brand new threats that can lead to personal or business reputation damage and financial loss 

  • Solutions from many different insurance providers designed to cover individuals, families and businesses from the these ever evolving cyber threats now exists

Ok, but I need examples.  How could insurance help?

  • Let's say that someone hacks your wifi, and is then able to hack into your email. The hacker then reaches out to your accountant from your personal email address asking them to wire money to what they claim is an investment account. Unfortunately this "investment account" turns out to be a fraudster's secret bank account in an undisclosed foreign location. Your accountant had no reason to believe it wasn't you sending the email, so they just followed "your" instructions. They typically won't be considered to be on the hook, and without adequate cyber fraud insurance you could lose thousands of unrecoverable dollars in an instant

  • Alternatively, imagine if your mobile phone were to get hit with a cyberattack, and access to everything on it is blocked with the attacker demanding payment in order to give you access back to your personal information like family photos and private texts. This event would require a payoff to end the attack, which might cost several thousand dollars. That payout can either come out of your pocket, or from an insurance provider if you have proper coverage in place. Following the attack you may also want and expert to conduct digital forensics to attempt to figure out what prompted the attack so you avoid another in the future. This too can be covered by an insurance provider or become an out of pocket expense for you if you don't have coverage in place

 

How about an example of cyber threats to my business?

  • Let's say you're a restaurant owner, and most of your delivery and pickup orders are requested and processed through your website or an app you've had developed. If your website and/or app are hit with a cyberattack this may lead to a sizable portion of your revenue temporary being reduced or completely cut off. Business interruption insurance can now be purchased from many different carriers that will cover scenarios just like this and avoid

  • Business Interruption and Extended Business Interruption coverage used to mainly be invoked in scenarios where an owner had to temporarily close after their business was damaged in a fire or experienced some other form of physical loss. While this is of course still an insurance necessity, with small businesses relying more and more on the internet to conduct day to day activities, a cyberattack is a new threat that can completely cripple a company's operations if proper insurance is not in place

I worry about my kids going online where I can't monitor them, is there an insurance solution for my kids?

  • While we won't be able to provide a solution that can control what your kids are doing online, we do work with certain insurance providers who can offer coverage to help with the fallout if you have a child who is being bullied online. For example, have you considered the cost of private tutoring, school relocation or psychiatric care that may be needed after a bullying incident? There is actually coverage from certain carriers in many states that now exists to pay for the cost of these types of events

  • While it may be sad and upsetting to discuss these the topic of cyberbullying, it's important to acknowledge that these risks are present and that there is insurance out there to help protect you and your family 

What do you need to get me price quotes for cyber or fraud insurance

  • We really only need a small amount of information about yourself, your family, your home/condo/rental and/or your business in order to try to obtain cyber/fraud insurance quotes as either an endorsement to a home/condo/rental or business owner policy or as a separate policy from one (or more than one) insurance provider

  • For the quickest turnaround time we recommend that you request your quotes by filling out our quick 2-5 minute online quote form (links directly below) 

  • Alternatively, we can set up a time to talk in person (depending on your location) or have you provide us with your information over the phone (212-495-9172 is our main number) or you can email us at Hayden@NorthImprovement.com. Whatever route you prefer to go is fine with us

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