People often don’t want to hear about insurance; it tends to make their eyes glaze over. However, cyber insurance is different from the usual types of insurance. It doesn’t cover physical damage like car accidents or property fires. Cyber insurance deals with virtual events, specifically instances where computers get hacked, whether it’s for individuals or companies.
How could cyber insurance affect you personally? Think about all your activities today that relied on access to records on your computer, such as Google Drive, Dropbox, or Apple Cloud. Imagine if you couldn’t use any of those services. How much would that have cost you? What if all your data on Google Cloud got wiped out, or your Dropbox was emptied, or worse, your phone data got hacked and stolen by an outsider? It would be an actual emergency situation.
This is where cyber coverage becomes crucial. Nowadays, even though there is a demand for it, many people don’t see its value. It’s similar to how people might avoid buying insurance for their car or house if they weren’t legally required to do so. But the risk of a cyber loss, whether you’re a business or an individual, is higher than many other types of losses.
As cyber events become more common and sometimes even required, people will start to consider cyber insurance more seriously. It’s becoming increasingly prevalent because the potential impact of cyber threats is significant.