Question 60

Cyber insurance for individuals is designed to protect against financial losses and expenses arising from various cyber incidents. Here's an analysis of the benefits generally covered:

• 1. Cost of restoration of the computer system in case of malware disrupting access to one's computer: This is a common coverage. Cyber insurance typically covers expenses related to data restoration, system reinstallation, and IT expert fees required to get a system back to normal after a malware attack, ransomware, or other cyber disruption.

• 2. Cost of a new computer if some miscreant wilfully damages it, if proved so: This type of physical damage (willful damage) is generally covered under standard property insurance or home insurance, not typically under cyber insurance. Cyber insurance focuses on digital risks like data breaches, cyber extortion, identity theft, and online fraud, not physical damage to hardware.

• 3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion: This is a crucial and common benefit. In cases of cyber extortion (e.g., ransomware attacks), insurers often cover the costs of engaging experts (e.g., cybersecurity firms, negotiators) to help mitigate the impact, recover data, or handle the extortion demands.

• 4. Cost of defence in the Court of Law if any third party files a suit: This is also a typical coverage, often referred to as cyber liability. If a cyber incident on an individual's system (e.g., data breach, accidental transmission of malware) leads to a third party suffering damages and filing a lawsuit, cyber insurance can cover legal defence costs and potentially settlement amounts.

Therefore, benefits 1, 3, and 4 are generally covered under individual cyber insurance.