Helping Clients Understand Personal Cyber Insurance Coverages

February 18, 2021

As homes fill with connected devices ranging from computers to baby monitors, televisions, cameras and refrigerators, families are also increasingly at risk of personal loss through cyber-attacks. Independent insurance agents have made cyber protection part of their everyday conversations with their commercial clients. Yet, home networks are often less secure and more vulnerable to hacks, exposing financial, medical, and social data to bad actors.

While renter’s insurance, homeowner’s insurance and credit-monitoring services are valuable protection against certain types of risks, a personal cyber insurance policy typically covers a much wider range of losses resulting from crimes including cyber extortion, cyberbullying, online fraud and data breach. Reviewing and explaining the risks and exposures to your personal lines clients could mean the difference between an online threat that goes unanswered versus remedied.

Cyber risks in our homes are on the rise, with a remote workforce mixing business and pleasure on their devices, yet the options for offering personal cyber policies remain surprisingly limited. Many personal lines insurers still do not offer this coverage as an endorsement or a standalone policy. One of the many advantages independent insurance agents have over some direct writers and exclusive agents is access to a wide range of insurance companies, including those that provide personal cyber protection insurance. A growing number of personal cyber products and programs also offer additional monitoring and security specialists services.

Are you having these conversations with your insureds? Studies suggest that consumers are ready to talk about the importance of personal cyber protection and education may help to cultivate motivated buyers. As an independent agent, proactively demonstrating your ability to adapt to new risks and look out for your clients’ best interests is important, and what most want (and expect) from their agents.