Cybercrime certainly isn’t a new threat within the business community. Across the globe, corporations have been working to implement increasingly sophisticated cybersecurity measures; governments have been enacting new legislation to protect consumers; and insurance providers have been expanding their cyber insurance options. And yet – data breaches, ransomware attacks, phishing campaigns, and other cybercrime efforts continue to impact hundreds of thousands of individuals and businesses in the U.S. alone.
So, while nearly all business owners and executives are discussing risk mitigation strategies for their businesses, a new question is becoming increasingly common:
Do CEOs and High-Net-Worth Individuals (HNWIs) need personal cyber insurance?
Cybersecurity Risks for Individuals
In the 2018 Internet Crime Report, the FBI reported receiving “a total of 351,936 complaints with losses exceeding $2.7 Billion.” That’s a staggering number which, unfortunately, is only expected to rise.
Between the smartphones in our pockets and the internet-connected devices in our homes and vehicles, hackers (potentially) have increasingly broad access to personal information. So, while many Americans would consider themselves as having a low risk of being on some hacker’s radar, those who are more affluent and/or visible need to recognize that they’re at a substantially higher risk of being targeted.
Here are some often-overlooked factors that may increase your risk:
- Executive titles on company websites and social media networking sites
- PR profiles and media coverage highlighting individual success and/or wealth
- Home addresses in famously affluent neighborhoods
- General visibility and/or celebrity
Remember, “extortion” and “personal data breach” are among the three top cybercrimes reported to the FBI.
Cyber Insurance Coverage for Individuals
Cyber insurance is much less common for individuals than it is for businesses. Unfortunately, there simply aren’t as many coverage options when it comes to “standard” personal lines of insurance. However, that’s not necessarily true when it comes to the high-net-worth market.
As more CEOs, executives, celebrities, and other HNWIs are recognizing the value of personal cyber insurance, the more options for cyber endorsements become available.
So, if you’re an individual who is at a heightened risk of being targeted by hackers, it’s time to speak with your insurance broker about your cyber insurance coverage options.
Let’s Talk About Comprehensive Insurance Coverage for You and Your Business
At Swarts, Manning & Associates, we provide a unique perspective on all of your commercial coverage options, and we help to determine which carrier best fits your business needs. We strive to find you the broadest coverage at the best available rate. Give us a call to get started: (833) 878-2820.
Each week, Swarts, Manning & Associates covers relevant topics for your business. Stay tuned to hear more discussions about managing your insurance and industry-specific tips.
