Unusual insurance coverage you may need in the future

Insurance is necessary to protect you or your property in case of an accident or injury. You are likely familiar with traditional coverage such as homeowners’, auto, and life insurance. However, modern life has brought new situations that were unheard of just a few years ago. Some of these situations can pose a threat to your finances, just like a house fire or car crash.

We look at four new types of insurance you may need to consider.

1. Cybersecurity insurance

Cybercrime is a major threat to businesses of all sizes. One attack can cost millions in lost revenue and time, not to mention a loss of reputation. If you are found to be “at fault” for the breach, you could also face lawsuits, fines, and other legal action.

Cybersecurity insurance is meant to protect individuals and businesses from the consequences of cyberattacks. There are two main types of cybersecurity insurance.

First-party focuses on compensating or mitigating the damage from direct cyberattacks.

Third-party covers damage if it is determined that you are responsible for a breach of another company, such as a client.

Cybersecurity insurance can be used to cover costs associated with:

  • Notifying customers about a breach
  • Restoring identities of customers
  • Recovering lost or compromised data
  • Repairs to computer systems

2. Drone coverage

Drones are becoming more common. Big companies, advertisers, and artists use them for everything, from building inspections to aerial shots for TV commercials and videos. Private citizens also use drones for a variety of purposes, from amateur photographers to people who are just into cool tech gadgets.

Many states require private citizens to carry drone insurance and liability as part of their homeowners’ policy. In some cases, the coverage may be included in your policy already. If not, you can add it.

The FAA classifies most drones as Unmanned Aerial Vehicles (UAVs), which means they are not mere toys. The FAA also requires people to register most drones, even those intended for personal use. How you use the drone, coupled with state and local regulations, could dictate the policy terms required for insurance.

If there are no regulations requiring insurance, you may still want coverage if only to cover damage or the loss of your drone. The coverage amount should depend on how much your drone costs. A sophisticated drone will require more coverage. You might also want extra liability coverage in case you ever damage someone else’s property.

3. Driverless cars

Technology is bringing us new innovations every day. They’re also bringing up questions for how to insure against damages caused by technology. Take driverless cars, for instance. Automakers and tech firms are busy producing prototypes as we speak. They’re meant to ensure safer roads, but what if there is an accident involving one of these high-tech vehicles? How do you insure them?

As more of these cars become widely available, there will certainly be changes in the way auto insurance policies are offered. Insurance, as we know it today, might change completely.

4. Internet of Things (IoT)

The Internet of Things (IoT) refers to a network of internet-connected devices. These devices can transmit data and information to a single device. They’re often appliances or other “non-computer” systems in your home or car.


  •   The “smart” refrigerator that will let you know when you’re out of milk
  •   The AC unit you can control from your smartphone
  •   The smartwatch that doubles as a cyber wallet

These are all examples of IoT devices. As they become even more predominant, there will be a need to insure them in the case of damage or loss. The insurance industry is studying the best way to cover this kind of technology.

There may be a need for coverage that will help replace or repair these devices. You may also need cybersecurity protection since any device that is connected to a Wi-Fi network is vulnerable to hacks.

As technology and trends evolve, our insurance needs to change. Coverage for cybersecurity, drones, driverless cars, and IoT devices may be needed soon.

If you have any insurance needs, from traditional to unusual coverage, and you would like a quote, contact us today.

This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state.