Friday, May 19, 2017

Property insurance companies start to cover ransomware, sometimes bundled with home and auto; is this always a good idea?

NBC News is reporting that several insurance companies, including AIG (from 2008) are offering new cyberinsurance, against identity theft and specifically ransomware losses. The story and video are here.

Homeowners’ policies today often cover identity theft now, but the ransomware payments and recovery seems to be new.   Usually this coverage has to be requested as an add-on endorsement for about $100 a year.

Bundling cyberinsurance with property insurance (auto and home) in umbrella (“rain shield”) insurance may not always be in the best interest of consumers.  It could lead to companies’ being nosey about consumer online reputation and habits.  This does not need to complicate covering your home from a tornado or car from a drunk driver.

The report mentioned threats against consumer cloud accounts (maybe bogus, by phishing). Consumers should always watch their bank and investment accounts online diligently. And don't click on attachments or links from sources you don't know.  Verify that the mail really came from (or would come from) the company in the header.  There is such a thing as safe computing. 

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