COVID-19, and its consequences for society, has been widely discussed over the past few months. Cybercrime has been a hot topic. In continuing with our Cyber Insurance series, we explain the ins and outs related to this topic.
What is a cyber-attack?
Cyber-attacks involve an attack on any digital device. An example could be a cellphone or laptop. It is carried out by a perpetrator to gain illegal access to your computer system. These perpetrators aim to steal your personal or financial information or damage your device.

What is cyber theft?
Cyber theft involves stealing financial or personal information. This occurs by perpetrators stealing information or money through a laptop, cell phone or a computer. These thieves can also use your financial information to engage in online shopping.
What is cyberbullying?
Online safety for your children is essential now more than ever. Due to COVID-19, youngsters are spending more time online. This is giving rise to increased cyberbullying.
Cyberbullying is intentional behaviour carried out by individuals, using cyber channels (like social media sites and personal websites). The aim is to send messages to hurt a specific person.
Cyberbullying includes:
- cyberstalking
- cyber harassment
- cyber mobbing
- offensive name-calling
- purposeful embarrassment.
You should always be wary of these points when in cyberspace.
Here is an example of cyberbullying and how cyber insurance can help:
Megan is an outgoing high school student. She is very popular– much to the frustration of the school’s netball team. The team’s captain is jealous of Megan being more popular than her.
The captain and her friends decide to create a “We Hate Megan” website. This is where girls can post reasons why they hate Megan. Soon, the entire school becomes involved in this malicious website. Many other students start to post hateful messages about her.
Megan’s mom has a cyber insurance policy. She contacts the call centre for legal advice. Forensic and legal experts can assist Megan’s mom in removing the website. They also help the expert team in mediating a solution.
What is cyber insurance?
Many insurers have cyber insurance that will cover instances of cyberbullying, cyber liability, attacks on computers, cell phones, tablets and cyber theft. Cyber insurance is there to reimburse you the financial loss suffered up to your insurer’s stated limit.
What is cyber liability insurance?
Cyber liability insurance will help in paying any third party for financial loss arising from a cyber-attack. Cyber liability coverage is designed to provide you with legal assistance, as well as financial coverage. Your insurer will pay for any third-party liability claim.
Here is an example of a third-party liability claim
Michael was handed a liability lawsuit from an acquaintance, Paige. The lawsuit states that he is the reason for Paige’s damaged laptop. The damage was due to a virus being sent to Michael’s laptop via an email attachment.
Michael has cyber liability insurance. He decides to contact his insurer for legal assistance. The forensic experts find out that his computer received a virus from Paige’s laptop. Following the investigation, an expert will assist Michael to come up with an agreeable solution.
Once a settlement amount has been finalised, Michael’s policy will cover the payment for damages.
We at RodelSA hope that you have a better understanding and can now answer the question “What is cyber insurance?” Please speak to a Rodel 4U broker if you need assistance in seeking a cyber insurance plan.