I am 28 years old and recently started freelancing full-time from home. I manage most of my work, finances and personal life online, from storing client files to using digital wallets and internet banking. I keep hearing about rising cyber fraud and data breaches and I’m starting to worry. What if I fall victim to a scam or my devices are hacked? Is there any way to protect myself financially from such threats? I’ve never bought cyber insurance before. What should I look for?
-Anav
You’re right to consider cyber insurance in today’s increasingly connected world. As technology becomes more integrated into our lives, the risks associated with cybercrimes such as theft of funds, identity theft, phishing, data breaches, and general online fraud have increased.
Since you’re a freelancer who works online extensively, it is vital that you protect your digital transactions, digital identity and data, and protect against legal liability. Start by looking for a cyber insurance plan that covers a wide range of cyber threats including identity theft, malware attacks, theft of funds, and even cyber extortion.
Apart from protecting you from cyber threats, a comprehensive plan will take care of legal expenses as well in case you need to pursue action against a fraudster or defend yourself from a third-party claim. Similarly, if your devices are compromised, a good policy should reimburse the cost of hiring an IT specialist or restoring lost data.
Family package
Many policies now extend the same level of coverage to your family members as well, protecting your spouse and children (below 18 years) against cyber risks.
Cybercrimes can be detrimental not just financially but also emotionally and psychologically. Some insurance plans cover therapy or psychological consultations to help deal with the stress or trauma of a cyber incident. And if identity theft causes disruptions to your work, the policy should compensate you for lost wages.
S. Vishwanathan is head – underwriting, at SBI General Insurance.
