For this blog post, Get Cyber Safe has partnered with the Insurance Bureau of Canada (IBC), who, like us, understands how important cyber security is to businesses as well as individuals. This blog represents their perspective and we thank them for being a dedicated partner in the cyber security of Canadians.
With cyber crime on the rise, cyber insurance is quickly becoming essential for businesses. It helps protect a business from losses resulting from digital risks like data confidentiality breaches, technology disruptions and cyber extortion. But did you know that similar protection is available for individuals and families?
Almost everyone at some point has been on the receiving end of a fraud attempt by message or email. Perhaps you got a text message or phone call that appeared to be from Canada Revenue Agency (CRA) claiming that you could be arrested for unpaid taxes. The scammer was hoping you’d reply in a panic and provide personal information that they could use to access your bank account. Or maybe you received an email that appeared to be from a delivery service, saying that they can’t deliver your package until you click on a malicious link to resolve the issue. Have you clicked on a link because you didn’t want to miss that parcel or you wonder if you forgot about something you ordered?
You likely have home or tenant insurance to protect your physical belongings from theft, but what if your digital assets are stolen or compromised? This is where a cyber insurance policy for your household can help.
This year alone, the Canadian Anti-Fraud Centre (CAFC) processed more than 21,600 reports of fraud as of June 30, 2024. In that same time, nearly 16,000 people had reported being victims of fraud totalling $284 million in losses. As individuals increasingly depend on internet-connected devices, criminals constantly look for new ways to target them.
Cyber criminals target individuals in all generations. That’s why sharing information about common scams and resources from the Get Cyber Safe campaign are important in keeping your loved ones safe. However, for extra peace of mind, many families add another layer of financial protection with a cyber insurance policy.
What does cyber insurance for households cover?
Cyber insurance for households can range from simple identity theft coverage to wider coverage that includes most forms of cyber attacks, like theft or fraud through a network, computer or digital device; and costs associated with having someone else’s personally sensitive information lost, stolen or published, (for example, a contact list with names, phone number, email addresses of friends).
These expenses can include restoring data and systems after a malware attack, hiring a professional to manage demands or threats and incurring fees from identify theft, like replacing identification documents and credit monitoring.
Who should consider adding cyber insurance to their home policy?
Unfortunately, cyber attacks can happen to anyone. Criminals use a sense of urgency and rely on an emotional response to trick their victims into providing information, so anyone who uses a mobile phone or any internet-connected device could be at risk.
Cyber insurance can also help the youngest generation. For example, some insurers offer coverage for cyber bullying to help families pay for counselling, legal fees, social media monitoring and other expenses to support a child’s recovery.
Does my home insurance cover cyber risks?
While a standard home insurance policy may cover certain types of fraud, it’s unlikely to cover the full cost of a cyber incident or identity theft. Speak to your representative to see if personal cyber insurance is right for you.
Conclusion - prevention is the first line of defence
Cyber insurance can be an effective way to help protect you and your loved ones from the impact of a cyber crime. The Government of Canada offers free resources to help individuals learn more about online risks and ways they can protect themselves. These resources include:
Small business owners can access Insurance Bureau of Canada’s cyber insurance resources at CyberSavvyCanada.ca.
To learn more about cyber risks and personal cyber coverage, contact your insurance representative.