What is Cyber Insurance?
Cyber risks are becoming an increasing concern, especially for successful individuals, families, and business owners. Understanding how to best protect your home network with a combination of insurance coverage and safeguards can help reduce your cyber risk and save you costly headaches in the future.
1. Use strong, unique passwords and multi-factor authentication methods.
Strong passwords are generally 8 characters or longer, including symbols, numbers, and random collections of lower case and uppercase letters. Multi-factor authentication methods allow password-protected access after providing multiple pieces of data for access. You may have noticed many banks and credit card companies have started offering two-step verification methods, where users must confirm a 6 digit code received on their mobile phone before logging in.
2. Secure home networks with effective encryption passwords and VPNs.
VPNs encrypt data, making it more difficult for hackers to intercept your personal information. Keeping anti-virus and all software applications current is also an important aspect of personal and financial data security.
3. Carry Cyber Liability and Cybercrime Insurance Coverage.
Many insurance carriers now offer expanded cybercrime, fraud, and liability coverage that provides enhanced protection and coverage for cyber risks. For example, if an authorized financial manager, personal assistant, or family office manager is deceived into wiring money from your account, insurance coverage may be available to help reimburse you for the damages. Additionally, unauthorized wire transfer or payments, forgery, or cyber extortion are becoming more frequent. Clients with a higher volume of assets face a unique risk to secure their cyber identity and insurance can be an effective solution.
Are you interested in knowing your cyber risk factors? Take this personalized quiz to help determine your cyber risks. If you are interested in a cyber risk review, please reach out to a trusted advisor at Sterling Coverage.
