Hi ,

Cyber protection insurance coverage on a homeowners policy typically offers protection against various cyber risks. Here are a few claims scenarios where this coverage might come into play:

1. Ransomware Attack on Home Network

· Scenario: A homeowner’s personal computer is infected with ransomware that encrypts files, making them inaccessible. The attacker demands a ransom payment in exchange for the decryption key.

· Coverage: Cyber protection insurance may cover the ransom payment (if necessary and approved), costs of hiring experts to negotiate and manage the situation, and expenses related to restoring data from backups or other sources.

2. Identity Theft and Fraud

· Scenario: A homeowner’s personal information is stolen through a phishing attack. The thief uses this information to open fraudulent credit accounts, leading to financial loss and damage to the homeowner's credit score.

· Coverage: The policy could cover legal fees, costs of monitoring credit reports, and expenses related to restoring the homeowner’s identity and credit standing.

3. Cyberbullying and Online Harassment

· Scenario: A child in the household is a victim of cyberbullying, resulting in emotional distress and the need for professional counseling and legal action against the harasser.

· Coverage: The insurance might cover counseling expenses, legal fees to pursue action against the perpetrator, and potentially relocation costs if necessary for safety reasons.

4. Data Breach Leading to Liability

· Scenario: A homeowner runs a small business from home and stores client information on their personal devices. A data breach occurs, exposing sensitive client data, leading to lawsuits and regulatory fines.

· Coverage: Cyber protection insurance could cover the costs associated with notifying affected clients, legal defense fees, and any regulatory fines or settlements.

5. Cyber Extortion Threat

· Scenario: A hacker gains access to a homeowner’s smart home system and threatens to disable the security system unless a ransom is paid.

· Coverage: The insurance policy may cover costs related to resolving the threat, including paying the ransom (if necessary), consulting experts, and repairing or replacing compromised systems.

6. Online Shopping Scam

· Scenario: A homeowner is tricked into purchasing goods from a fraudulent website, and the goods are never delivered. The credit card used for the purchase is also compromised.

· Coverage: The insurance could reimburse the homeowner for the loss and cover expenses related to canceling and replacing compromised credit cards.

These scenarios illustrate the range of situations that could be covered under cyber protection insurance, offering homeowners peace of mind in the digital age.