Americans are more connected to the internet than ever before. Whether it is our computers, our phones, our TVs or our security systems, nearly all appliances can now be connected to the web.
This wave of connected devices coming into homes has created a heightened exposure to cyber threats and a new stomping ground for cyber criminals.
“Cyber criminals who have targeted commercial computer networks are now finding their way to targeting individuals’ personal PCs and devices,” says
NAS Insurance’s senior vice president of marketing, Jeremy Barnett. “There is an interesting trend that we are seeing, and I think that it is something homeowners’ policies never really contemplated.”
Aiming to enhance policies to keep up with evolving cyber threats, NAS Insurance recently introduced Personal CyberPlus, an add-on product for personal lines policies with robust cyber protection. The new product protects policyholders from identity theft expenses, credit card fraud, forgery, wire transfer fraud, cyber extortion, cyber bullying, break notification costs and cyber protection legal expense reimbursement.
“There is coverage in the event of cyber bullying and the expenses associated with that difficulty. Personal CyberPlus would reimburse a family for costs such as counseling or tutoring,” he says.
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“Also, there is coverage for if you have ransomware on your computer or device and are required to pay a ransom to get the encrypted machine unencrypted.”
According to Barnett, a majority of the ransom requests that the professionals at NAS are seeing are being requested in bitcoin, which is now valued at nearly $1,200 – a significant price to pay for an individual to simply get the use of their computer back. In addition to paying ransom, hiring a technician following the cyber attack to ensure everything is restored properly and safe to use is typically required, and an additional cost for the victim to pay.
However, Barnett points out that it is important to distinguish what cyber liability for a homeowner truly means, as, in many cases, cyber liability can be confused for the protection of internet-connected property, which is not the case.
“It is about the information and the liability of the owner,” Barnett says. “It is less about the property damage and more about the potential legal threats to the individual homeowner following a cyber attack, and happens to a human being as a result of that kind of event.”
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The rise of ransomware: What should brokers know?
