Mercury Insurance now is offering home cyber protection coverage to homeowners and renters in California.
In a statement, Mercury said that this new coverage would provide Mercury policyholders with "significant cyber insurance protection" including payment and security solutions for computer and home system attacks, cyber extortion, online fraud, and the breach of personal information involving smartphones, computers, and connected home devices.
"Homeowners and renters have enjoyed the added convenience provided by computers, tablets, and smartphones, but these devices create new opportunities for cyber criminals to infiltrate your home," said Jane Li, Mercury's director of product management. "Mercury is here to protect its customers from cyber threats, and the coverage can be added to an existing homeowners or renters insurance policy and protects families when using such devices both at and away from home."
Mercury said that its home cyber protection coverage would cost as little as $2.50 each month and would include the following:
- Payments to recover data and restore systems that have been lost or damaged due to a cyber attack – including ransomware attacks involving malware or unauthorized use of devices.
- Professional assistance by cyber extortion experts when responding to ransom demands.
- Protection from online fraud that results in a direct financial loss to a covered policyholder.
Mercury said that its home cyber protection coverage is initiated upon an insured's discovery of a cyber attack, cyber extortion threat, or fraud event. Individuals and families who discover the triggering event during the policy period and report the claim within 60 days will have "full coverage" from losses caused by cyber attacks, according to the company. Coverage can be added mid-term, and limit options of $25,000 and $50,000 per year are available.
Ms. Li added, "An example of a cyber attack claim is if you receive a ransom demand on a computer after noticing your files are locked. The demand states that you need to pay $2,000. Mercury will review the claim and if credible, cover the insured's loss."
Currently, Mercury's home cyber protection coverage is available to Arizona, California, Georgia, Illinois, Nevada, New Jersey, Oklahoma, Texas, and Virginia homeowners and renters.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].