Newsfeed alerts about cyberattacks occur every day. It can feel like you’re in perpetual defense mode. You might feel hopeless about weathering a direct cyberattack because you assume cyber insurance isn’t for regular people. Think again.
Take the cyber insurance coverage quiz to see how much you know. The answers and explanations are at the end. (Sorry, no cheat codes.) Good luck!
1. Personal cyber insurance covers cyberbullying. It may even help pay for psychiatric services and lost wages.
True or false?
2. What’s the purpose of personal cyber insurance?
A) To protect you after a cyberattack
B) To protect your devices from physical damage
C) To prevent malware from infecting your devices
D) All of the above
3. Which of these events is covered under a personal cyber policy?
A) A data breach
B) Identity theft
C) Cyberbullying
D) All of the above
4. Personal cyber insurance, cyber risk insurance and data breach insurance are the same thing.
True or false?
5. What are “first-party damages” in a personal cyber insurance policy?
A) Damages experienced by other people
B) Damages experienced by you and the people listed on your policy
C) Damages experienced by businesses you have accounts with
D) Damages experienced by the hacker after they’re caught
6. Basic personal cyber insurance is included in your home or renters policy.
True or false?
7. What is the main difference between personal identity theft insurance and personal cyber insurance?
A) Identity theft insurance is for physical theft; cyber insurance is for online theft.
B) Identity theft insurance responds only to identity theft; cyber insurance prevents cyberattacks from malware and phishing.
C) Identity theft insurance has services to monitor and respond after your identity is stolen; cyber insurance covers a broad range of cyber threats like cyberbullying and data breaches.
D) There is no difference between them.
8. The more digital assets you have, the higher your personal cyber insurance premiums will be.
True or false?
9. A personal cyber policy will cover any situation that involves attacks originating online.
True or false?
10. What costs would a personal cyber policy cover if a phishing attack released malware into your laptop?
A) Repairing physical damage to the laptop
B) Recovering lost data and restoring systems
C) Purchasing a new laptop
D) Subscribing to antivirus software
11. You get an email from your child in college. They claim there was an issue with their tuition payment. They send you a link and ask you to pay the bursar’s office immediately, or they’ll get unenrolled from their classes. You click the link, enter your banking information and authorize a fund transfer. But when you call the bursar’s office to confirm the transaction, they tell you there was no issue and they never received a transfer.
You realize you’ve been tricked into sending money to scammers under false pretenses. Good thing you have deceptive transfer fraud protection in your personal cyber policy. You’re covered.
True or false?
12. What is cyber extortion?
A) Destroying someone's online data and files
B) Holding someone's computer access or data for ransom
C) Sending someone a computer virus
D) Hacking into someone's financial accounts
13. Which of the following does personal cyber insurance cover?
A) Illegal bank and credit card transfers
B) Counterfeit money issues
C) Phishing attacks
D) All of the above
14. How can personal cyber insurance help after a data breach?
A) By paying legal fees
B) By covering lost wages
C) By funding a forensic IT review to find out what went wrong
D) All of the above
Answers and explanations:
1. True. Personal cyber policies differ depending on the insurance company writing them. Some policies cover cyberbullying, including reimbursing you for counseling, lost wages and temporarily relocating from your home.
2. A. Cyber insurance helps you recover after a cyberattack, like a data breach or phishing scam. Insurance responds during or after the incident, not before. While using antimalware software and other protection strategies is essential, that’s different from cyber insurance. You can claim physical damage to your computer under your home or renters policy if it’s from a covered loss, like a theft. But you can’t claim physical damage to your computer under cyber insurance.
3. D. Personal cyber insurance protects against data breaches, identity theft, cyberbullying and more. Depending on your policy terms, it can even cover your connected car.
4. True. Personal cyber, cyber risk and data breach insurance cover the same things.
5. B. First-party damages are direct losses you experience due to a cyberattack, such as the cost to restore your data. Third-party damages are losses other people or businesses experience. People who willingly commit crimes aren’t covered by insurance, so the hacker’s losses are irrelevant.
6. False. Personal cyber insurance isn’t included in standard home or renters policies. You can add cyber insurance to some home insurance policies, or you can buy a separate, stand-alone policy. Stand-alone cyber policies don’t affect your home insurance claims record.
7. C. Personal identity theft insurance helps with the aftermath of identity theft. It defends you in court, disputes fraudulent charges and helps restore your identity.
Personal cyber insurance covers an even broader range of cyber threats, like:
- Reimbursement for financial losses
- Computer restoration
- Forensic IT investigations
- Defense for lawsuits resulting from fraudulent acts committed using your identity
8. True. Insurance companies review the type and amount of digital assets you have when determining your premiums. If you have a smart home with multiple connected devices like appliances, lighting and home security, you’re at a higher risk for a cyberattack. The more digital assets you have, the more entry points there are for a criminal to hack into your systems.
9. False. Every insurance company has different terms for their cyber insurance. They might exclude certain scenarios from coverage. For example, some policies don’t cover ransom payments or income interruptions, while others do. That’s why it’s important to evaluate your risk exposures to find the best policy for you. Your insurance agent can help you decide. (And no insurance policy covers you if you intentionally participate in the fraud.)
10. B. Personal cyber policies cover damages caused by malware, such as recovering data and restoring your computer’s functionality. However, standard policies don’t include new hardware or software subscriptions.
11. True. Deceptive transfer fraud is a specific type of fraud where individuals are tricked into sending money to criminals under false pretenses. Some personal liability policies cover this.
12. B. Cyber extortion is when hackers inject malware into your computer, usually from a fake email link or download. They take over your computer so you can’t access it. Then they demand a ransom payment to restore access to it.
13. D. Personal cyber insurance covers illegal bank and credit card transfers, counterfeit money issues, and phishing attacks. Cryptocurrency could be excluded, so verify this coverage before you buy your policy.
14. D. A personal cyber policy covers things like:
- Legal fees to restore your identity or establish liability
- Lost wages because of the cyberattack
- Forensic IT services to pinpoint how the cyberattack happened
Questions about your cyber risk? Call your Rathbun Insurance account manager! They’ll help you decide on coverage options.