By Madelyn Newland, CAPI, Client Executive, PC at Holmes Murphy

Homeowner’s insurance is constantly evolving, and so are the add-on coverages that provide additional protection. Many insurance carriers have added cyber coverage to their offerings, but you may have missed out on the opportunity to add this coverage to your policy if you’ve been with the same carrier for several years.

How Much Coverage Do You Need?

A standard carrier will offer $15,000 or $25,000 in cyber/identity fraud coverage, and specialized high-end carriers can offer up to $1,000,000 in coverage. The cost of the coverage itself can be surprisingly affordable. For example, Pure Insurance offers $100,000 of coverage for $250 per year as an add-on to a homeowner’s policy.

What Can Cyber Insurance Cover?

Coverage varies by carrier, but here are a few examples of how cyber insurance can help if you experience a loss.

Social Engineering Fraud: Cyber insurance can replace personal account funds if you were misled into transferring funds to an illegitimate person/organization.
Cyber Financial Loss: Cyber insurance can replace funds from a personal cyberattack.
Data Recovery and System Restoration: Cyber insurance can provide coverage for a professional to reinstall damaged software, remove malicious code, reconfigure your device or system and replace corrupted/lost data.
Cyber Extortion: If a cybercriminal holds your data, computer, and/or sensitive data until you meet their demands, cyber insurance can pay for the cyber extortion and immediate access to advice to help you respond to the threat.
Identity Fraud: If your identity is stolen, cyber coverage can assist with paying for a consumer fraud specialist, resolution services to help reclaim your identity and credit, and reasonable attorneys’ fees.
Home Systems Attack: Cyber insurance can pay to restore devices connected to the internet, including smartphones, thermostats, security monitoring systems, etc.
Cyberbullying: Cyber insurance can provide assistance if online harassment results in wrongful termination, wrongful discipline from school or debilitating emotional impact.

Cyber Coverage in Action

These aren’t hypothetical situations. Here are two real-world examples from our carriers illustrating how cyber insurance helped homeowners.

Sam received a ransom note on his computer screen after he realized all his files had been locked. The message noted that he needed to wire $3,000 to receive the key to access his files. Sam reached out to his insurance carrier and was put into contact with an expert to consult on this matter. In the end, they did pay the ransom and received access back to the files. The carrier paid $3,000 plus the cost to consult with an expert.
Joe had been going through a large home renovation. He received an invoice that appeared to be related to the project for electrical work. He paid the invoice for $5,000. He later received the real invoice and started questioning why he was receiving another invoice. After further digging, he learned he had been deceived into sending money to an illegitimate party and he had no way to retrieve the money. The carrier paid $5,000 from the social engineering limit in the cyber policy.

Don’t Wait to Protect What Matters Most

Our team at Holmes Murphy offers cyber coverage to our new and existing clients. Coverage can include proactive measures – like Norton Life Lock services to help prevent attacks – or reactive support to help homeowners recover after a loss. Whether you’re looking for a proactive or reactive approach, the key is to have a plan. Cyber threats are evolving, and cyber insurance can ensure your coverage is ready. Reach out today or visit holmesmurphy.com to learn more.

Madelyn Newland is a Client Executive at Holmes Murphy & Associates in the Property Casualty division, specifically focused on Private Risk insurance solutions. In this role, Madelyn works with prospects and clients to understand their family’s risks; works with insurance carriers to negotiate the best coverage and price for new clients and renewals; and focuses on high-end homeowners, auto, valuable collections, watercraft, and umbrella insurance coverages. Madelyn earned a degree in Finance from the University of Iowa. In addition to her education, she earned her Certified Advisor of Personal Insurance (CAPI) designation from the Wharton School of Business and her Commercial Lines Coverage Specialist (CLCS) designation from the Hartford School of Insurance.