What do cyber insurance policies do?

Private cyber insurance policies protect consumers against risks that may arise during Internet use. These policies can cover pecuniary loss due to identity theft in the context of online banking, for example, or caused by fraud in online shopping transactions. Data recovery following a hacker attack is another possible case for cyber insurance.

A cyber insurance policy can also help to insure against personal risks. Some of these policies are designed to assist you, for example, if your personal data or photos are published on the Internet without your permission or if offensive content is disseminated about you. It is also possible for a cyber insurance policy to include an initial psychological consultation in cases of cyber mobbing.

What should I consider when taking out cyber insurance?

Cyber insurance policies are not standardised products. The protection they offer can differ considerably, depending on the provider and the premium rate; the costs also vary accordingly. The costs and the level of cover depend in particular on an excess (if agreed), the risk assessment and any exclusions agreed. BaFin recommends that you check carefully whether the cover provided by the insurance fits your needs before you take out an insurance policy.

It is likewise important that you know the maximum compensation amount per insured event, as losses will only be insured up to this amount. In addition, there is usually a maximum number of insured events per year that can be compensated under your insurance policy. Insurers often make comprehensive product information available on their websites. In many cases, a personal consultation is advisable.

Before taking out cyber insurance, you should also make sure the risks you want to insure against are not covered by insurance you already have. Individual risks may be covered by legal expenses insurance, for example – or by contents insurance, liability insurance or even health insurance.