Who Needs Cyber Insurance?

Basically: Cyber insurance is necessary for all those who work with the Internet and cannot or do not want to bear financial losses due to hacker attacks or other damage that can occur through global networking. Cyber insurance is recommended for both companies and private individuals.

Cyber insurance for companies: protection in the face of increasing digitalization

We remember: A few years ago there were only computers in offices or there were PCs that controlled a company's machines and systems. They were all not connected to one another, the computers were neither connected to the company network nor to non-company computers or servers.

Today it looks different and there is hardly a PC left that is not networked. Everything is based on networks which, despite all computer security, are not always and in every place really safe. Last but not least, the human being as a user represents a risk factor that can neither be ruled out nor really calculated.

Cyber insurance makes sense for all companies that rely on strong internal and external networking and that will continue to rely on digitalization in the future. Basic rule: The more the business depends on how efficient the IT is or how well it works, the more important it is to have appropriate insurance. It protects against personal and third-party damage and protects a company from possible bankruptcy due to high compensation payments with simultaneous company downtime.

It has to be honestly said that a company is already vulnerable if it only relies on online banking, if it transmits accounting data online to the tax office or if it is telephoned over the Internet. If hackers want to break into the network, they can do it! Good for the company, which is then covered and at least the financial damage is compensated.

Cyber insurance also makes sense for private individuals?

Private individuals who frequently use the Internet should also consider cyber insurance. They are also dependent on achieving the best possible protection for their activities, although common virus protection programs are not always helpful.

If, for example, booking errors occur when shopping online, goods ordered are not delivered or someone else orders from an online shop via their own purchasing account, insurance is actually helpful. The damage is limited to CHF 10,000, for example, which should, however, adequately protect most online orders.

Social networks are also a high risk, as accounts are often copied and used for illegal purposes. Identity theft can go so far that financial transactions are carried out in the name of the person being stolen? the costs are borne by the victim.

Cyber insurance is therefore also strongly recommended for private individuals, provided that they frequently use the Internet or do their shopping there. Since the cyber insurance also covers the costs of data recovery, it is also helpful for private individuals in the event of a damaged hard drive by a hacker attack.

However, it is important to read the terms and conditions of the insurers and to be aware of all exclusions and restrictions on benefits before signing the insurance contract. Here at neotralo.ch you can compare the providers!

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What is cyber insurance?

The devices, systems and machines of a company are increasingly networked with one another. This ensures significantly increased efficiency at work, but at the same time increases the risk of cyber attacks with sometimes serious consequences. Cyber insurance protects against hacker attacks and, for example, replaces financial loss, damage caused by business interruption and extraordinary costs that cannot be calculated. Cyber insurance is now also available to private individuals.

Cyber insurance for companies: protection against high costs

Not only that a hacker attack can be responsible for a standstill of the entire production and thus for high sales losses. Above all, the cyber attack can result in incalculable costs that also extend to the company network and customers.

But cyber insurance does not only cover attacks from outside. Employees who pass on sensitive data or install defective software can also cause major damage, which is covered by cyber insurance. Both personal and liability losses are insured, the latter being limited to pure financial losses and immaterial losses. The costs for legal advice are also covered.

Cyber insurance has a big plus because it not only pays when direct damage has occurred, but it also pays for indirect damage. These arise, for example, when there is a complete loss of data. Downtimes in production can also result in high costs for a company, which, however, can be borne thanks to the insurance. The protection of cyber insurance for companies thus goes well beyond IT system insurance.

Cyber insurance for private individuals: everyday claims covered

Not only are companies increasingly working digitally, the everyday life of the Swiss is also increasingly determined by computer technology. Cyber insurers have recognized this and have long been offering corresponding insurance for private customers. These are often available as an addition to normal household insurance, and legal expenses insurance sometimes also includes cyber insurance.

Some insurers, however, now also offer individual insurance. This covers the typical damage cases:

- Data loss
- Theft of one's identity
- Damage from online shopping
- Personality violations

In addition, legal protection insurance services are usually provided so that legal advice and representation are also included in the scope of services of the cyber insurance. However, these benefits are usually rather scarce, so that they are often not sufficiently high in an actual legal dispute.

Damages in connection with online shopping are not offered by all insurers. In addition, the amount of cover is usually limited, for example to 10,000 francs. Wrong deliveries, damage or missing deliveries are then insured.

The benefits are usually capped when it comes to protection against identity theft. Some insurers explicitly exclude damage from online or mobile banking. Anyone who wants to protect themselves as a private person with cyber insurance against damage that can result from the use of the Internet should therefore take a close look.

Not all providers offer really sensible policies, some set the performance limits clearly too tight. This still leaves a large part of the costs with the insured.

Conclusion: Before getting cyber insurance? regardless of whether for a company or as a private person? the providers should definitely be compared here on neotralo.ch in terms of services and premiums!

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29. September 202029. September 2020

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