Insurance companies have started to respond to the alarming rise in cyber incidents by providing cyber coverage to clients, Reuters reports. American International Group Inc (AIG) is the latest to do so with its Family CyberEdge plan, which will cover customers' expenses related to online extortion, bullying, etc.
Recent trends have shown that high-profile individuals are becoming targets of hackers who steal and leak victims' sensitive personal details and photographs online. The US government is ready to recall certain privacy rules and insurance companies are scrambling to cash in on it.
Premiums for such coverage vary but would typically be less than $100 for $25,000 to $50,000 of coverage. According to Jerry Hourihan of AIG Private Client Group, policies cost around 10-15% of a homeowner’s premium.
Coverage provided typically includes malware removal, online fraud reimbursement, data restoration, family electronic device assessment, and cyberthreat monitoring.
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