By Neil Rekhi, Personal Cyber Insurance Product Lead, The Hartford Steam Boiler Inspection and Insurance Company and Paul Mander, Chief Commercial Officer & GM of Optery for Business.
When people think “cybercrime,” they often picture hackers breaching corporate networks or large-scale ransomware attacks. But the truth is, cyber threats are increasingly personal — and they usually start with one thing: your exposed data.
Everywhere you go online, you’re leaving behind sensitive personal information — credit cards, health data, browsing history, even your kids’ photos. Data brokers and bad actors can access and trade this information, putting families at risk. That’s why data privacy and cyber protection go hand-in-hand.
Because so many attacks begin with information criminals gather from people-search sites and data brokers, one of the most effective preventative steps individuals can take is reducing the amount of personal data available about them online. Limiting that exposed information removes much of what scammers rely on to target families in the first place.
Cyber threats are widespread. In fact:
- 73% of U.S. adults have experienced some kind of online scam or attack, with most receiving scam calls, texts, or emails at least weekly. ¹
- 29% report that a personal online account — such as social media, email, or a bank account — was hacked. ²
- Nearly 40% of victims say they were unable to recover any of the money lost in scams, and only 44% recovered some of their losses.³
- Identity fraud and scams are costly, totaling $47 billion in 2024 according to AARP⁴
Personal cyber insurance provides the safety net if, despite your precautions, your data is misused in online fraud, extortion, or other attacks. It helps families both prevent and recover from today’s most common cyber threats.
Myth #1: “My homeowners policy already covers this.”
Most homeowners policies don’t cover losses tied to misused data — like online scams, identity theft, cyber extortion, or hacked smart home devices. Or if they do, the coverage is limited. Cyber insurance tends to have broader coverage and higher limits, and closes those gaps.
Myth #2: “Cyber insurance is only for big companies.”
Corporate breaches may make headlines, but the stolen data often gets resold and reused in attacks against individuals. That’s why cyber protection matters for families too.
Myth #3: “It won’t happen to me.”
It’s already happening. Studies show:
- 3 in 4 consumers have had their personal information lost or stolen.⁵
- The average payout for a personal cyber insurance claim exceeds $15,000, according to Hartford Steam Boiler.
- A single stolen password or leaked Social Security number can fuel multiple fraud schemes — which is why having cyber coverage offers essential protection.
But strong protection also requires minimizing what attackers can use against you in the first place. For example, with nothing more than an email address exposed on a data broker site — easily discoverable through a simple Google search — criminals can locate your breached password information from public leak repositories within seconds. If you reuse passwords or common variations across accounts, attackers can take them over in minutes. Reducing the amount of personal data available about you online makes these attacks far harder to execute and significantly lowers the likelihood of ever needing to file a cyber claim.
Myth #4: “It’s probably too expensive.”
Personal cyber coverage is more affordable than people expect — especially compared to the costs of successful scam, identity theft recovery, legal expenses, or ransomware. Think of it as a financial safety net for your digital life.
Myth #5: “I don’t really understand what it covers.”
At its core, personal cyber insurance provides financial reimbursement and expert support when you are a victim of cyber crime. Typical coverage includes:
- Reimbursement for online financial fraud and online scams
- Identity theft expenses and restoration services
- Assistance with ransomware or cyber extortion
- Help with hacked devices or malware infections
- Cyberbullying and online stalking support
- And more
Cyber threats may be invisible, but the consequences are very real. From online scams, identity theft to online harassment, these are personal invasions of privacy — and they can be overwhelming to manage alone.
As cyber threats evolve, prevention and protection increasingly go hand-in-hand. Many insurers now pair cyber coverage with proactive tools that help individuals reduce their online exposure and lower the likelihood of an incident in the first place.
HSB’s Cyber Navigator platform gives policyholders access to discounted personal data removal through Optery. Optery helps individuals identify and opt out of listings across hundreds of data broker sites that publish home addresses, phone numbers, emails, and other exposed personal information. Reducing this online exposure can help families lower their risk of scams, impersonation, and other PII-driven threats that often lead to personal cyber insurance claims.
Personal cyber insurance steps in when prevention isn’t enough, helping you recover financially and emotionally. In a world where personal data is constantly under attack, cyber insurance provides the peace of mind families need today.
Sources:
¹Pew Research Center, Online Scams and Attacks in America Today (2025)
²Pew Research Center, Online Scams and Attacks in America Today (2025)
³PYMNTS Intelligence, 30% of U.S. Consumers Fall Victim to Financial Scams (March 2025)
⁴Javelin Strategy & Research, Identity Fraud Study: Losses Rise to $47 Billion in 2024, published by AARP (February 2025)
⁵Insurance Information Institute & HSB, Addressing the Personal Cyber Protection Gap (2024)
Disclaimer: Products and services provided by The Hartford Steam Boiler Inspection and Insurance Company (“HSB”) and its affiliates. Any descriptions of coverage contained in this report are meant to be general in nature and do not include nor are intended to include all of the actual terms, benefits, and limitations found in an insurance policy. The insurance policy and not any content reflected on this website will form the contract between the insured and insurance company and governs in all cases.
HSB Home Cyber Protection with Zeguro Cyber Navigator is available through insurance companies that partner with HSB. For more information visit HSB’s website.
Hartford Steam Boiler (HSB), part of Munich Re, is a multi-line specialty insurer and provider of inspection, risk management and IoT technology services. HSB insurance offerings include equipment breakdown, cyber risk, specialty liability and other coverages. HSB blends its engineering expertise, technology and data to craft inventive insurance and service solutions for existing and emerging risks posed by technological change. Throughout its 158-year history HSB’s mission has been to help clients prevent loss, advance sustainable use of energy and build deeper relationships that benefit business, public institutions and consumers. HSB holds A.M. Best Company’s highest financial rating, A++ (Superior). For more information, visit www.hsb.com.
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