Police for the net: Cyber insurance: Do I need it and how does it protect me?

They spread malware, go online shopping under a false identity, or fish for passwords or payment information on the net: cybercriminals are always on the lookout for victims. According to the Cybersecurity Monitor, a representative dark field study by the Federal Office for Security in Information Technology (BSI) and the police, in 2025, every fifth person (22 percent) in this country had already been a victim of internet crime at least once.

The consequences of an attack can be severe. To secure themselves, insurers therefore offer special cyber policies.

Before taking out a cyber insurance policy, check other policies first

However, anyone interested in cyber insurance should first check whether they already have sufficient protection through other insurance policies, for example:

Private liability insurance: From the perspective of the consumer protection organization Bund der Versicherten (BdV) based in Hamburg, a good private liability insurance policy should insure so-called internet damage as comprehensively as possible. "It covers damage that you cause to third parties through the use of the internet," says BdV expert Julia Alice Böhne.

For example, someone unintentionally forwards a virus by email or message and the recipient suffers damage as a result. In addition, the private liability insurance should also defend against unjustified claims.

Household insurance: A good household insurance policy should cover financial losses that have arisen through online fraud, as Böhne says. The service should not be limited to a conclusive catalog of fraud methods. Many modern tariffs cover financial losses at least through phishing during online banking, but only up to a certain maximum amount.

Similarly, the assumption of costs for data recovery after an insured loss - such as a lightning strike - is often part of the insurance coverage, according to Böhne. Again, the service is usually limited to a certain percentage of the insurance sums or to a fixed sum.

Legal protection insurance: Depending on the contract, legal protection insurance will cover legal disputes with regard to internet crime.

Who needs cyber insurance - and who doesn't

Existing liability, household or legal protection insurance policies often cover existing cyber risks or can be specifically expanded. "Only if, after such a check and expansion, a relevant and existential protection gap remains, can the conclusion of a specialized private cyber policy be an option," says Böhne. "A cyber insurance policy is particularly suitable for people who manage many assets online or use digital services intensively," says Lukas Spohr from the IT industry association Bitkom.

But people with lower IT knowledge can also benefit, especially if they need quick support and professional help in dealing with damage in an emergency. "In this way, cyber insurance offers both protection against financial losses and relief in situations where quick responsiveness is crucial," says Spohr.

What cyber insurance covers

There is no uniform product or market standard, as Julia Alice Böhne says. There are also no sample conditions from the German Insurance Association (GDV). "The range of services offered by private cyber protection tariffs is extremely varied," Böhne states. Comprehensive tariffs provide protection against cyber-property damage and also include cyber liability insurance and cyber legal protection insurance. These can also be selected as additional modules.

Examples of possible tariff inclusions

Services for cyber-property damage that may be included in each tariff include, for example:

Damage through account, data or identity misuse.

Data recovery after cyber attacks.

Losses when shopping online - for example, if ordered goods are not delivered.

Regulation of compensation claims and legal advice

An example of a service in cyber liability insurance: If a third party is damaged by a cyber attack on the insured's systems, the insurance company covers justified compensation claims, for example due to data protection violations.

The services of cyber legal protection insurance include, in addition to telephone legal advice, assistance in the event of a warning due to alleged copyright infringement, for example through illegal downloads.

Difference between private and business - also in terms of costs

"Basically, cyber insurance policies distinguish between policies for private customers and policies for companies or industrial customers," says Spohr. Depending on the product, the definitions of hazards, limits and exclusions vary. "In the private sector, cyber policies are often in the low two-digit euro range per year," says Spohr.

Comparison portals cite around 50 euros per year as a rough guide - depending on the scope of services and provider. "The costs of cyber insurance for private individuals are generally not tax-deductible, as they are costs of private living," says Spohr.