Misconceptions About Cyber Insurance

Cyber insurance can help safeguard you from the growing risks of identity theft, online fraud and digital scams.

In a world where most of us shop, bank and manage our lives online, the risk of cybercrime is more personal than ever. But despite growing threats, many people still don’t think cyber insurance is for them — often because of lingering myths.

Common Misconceptions about Personal Cyber Insurance

“My homeowners policy already covers this.”

Most standard homeowners policies don’t cover things like identity theft, cyber extortion or online fraud. Personal cyber insurance helps fill those gaps and respond to digital threats.

“Cyber insurance is only for big companies.”

Cybercrime doesn’t just target businesses. Everyday individuals and families are frequent victims of scams, phishing emails and hacked devices. If you’re online, you’re at risk.

“It won’t happen to me.”

Unfortunately, it’s happening to more people than you might think. In 2024 alone, there were over 860,000 cybercrime complaints in the U.S., with billions in reported losses.

“It’s probably too expensive.”

Coverage is often more affordable than people realize — and the cost of not having it can be steep. The average payout for a home cyber claim is more than $10,000.

“I don’t really understand what it covers.”

Cyber coverages can sound very technical. But think of it like this: it helps protect you from things like stolen identities, hacked smart home devices and financial scams. It’s peace of mind for your digital life.

Don’t let myths leave you unprotected. A little knowledge — and the right coverage — can go a long way in today’s connected world.

The Hartford Steam Boiler Inspection and Insurance Company provides The Cincinnati Insurance Companies with a variety of support services, including call center assistance, collaborative claims service and risk mitigation materials.

This loss control information is advisory only. The author assumes no responsibility for management or control of loss control activities. Not all exposures are identified in this article. Contact your local, independent insurance agent for coverage advice and policy service.