The commercial cyberliability insurance market is well-established, with U.S. corporations now spending in excess of $1 billion annually on insurance premiums for coverage. Recognizing that individual consumers also face cyberliability risks at home, major insurers (including AIG, Chubb and The Hartford) have recently developed cyberliability coverages to address these risks. Policies are now available to homeowners and renters that provide coverage for:

  1. data restoration following a cyber attack on personal computer systems and other connected devices;
  2. reimbursement for payments made to terminate a cyber extortion threat;
  3. cyberbullying expenses such as psychiatric services, security consultant services, professional digital forensic analysis and temporary relocation rentals; and
  4. crisis management and reputation restoration.

These personal lines coverages are available both as stand-alone insurance policies and as part of homeowners and renters policies. The premium cost can vary widely based on the breadth of coverage and desired policy limits. If these cyberliability coverages are of interest to you or your family members, be sure to discuss them with your insurance agent or broker well in advance of the renewal date of your existing homeowners or renters insurance policy term.