What is personal cyber insurance in Canada, and is it worth it?

With files from Samantha Kohn

This article was originally published on July 19, 2024 and was updated on December 26, 2025. 

The threat of having your identity stolen, email hacked, or bank account drained is becoming more of a possibility every single day. What was once considered a business-only risk is now a reality for many Canadians. As more of our daily activities move online, we’re increasingly vulnerable to cyberattacks, and a single click on the wrong link could cost you more than just your privacy. 

Enter personal cyber insurance. 

Personal cyber insurance is a relatively new insurance product designed to protect individuals against online risks. It's typically offered as an endorsement to a home insurance policy, since standard home insurance may not fully cover you from cyber risks. 

With cyberattacks becoming a serious threat, now is a good time to learn how personal cyber insurance works in Canada and whether it’s right for you.

What is personal cyber insurance in Canada?

Personal cyber insurance in Canada protects individuals from the financial impact of cybercrime. It can cover costs associated with identity theft, online fraud, data breaches, ransomware, and other online threats. It can also provide peace of mind by paying for recovery efforts, such as restoring personal data, notifying affected parties, and covering legal fees as needed.

What does personal cyber insurance cover?

Personal cyber insurance provides coverage for several types of threats, including:

• Identity theft – Covers expenses related to restoring your identity, such as legal fees and lost wages.
• Data breaches – Covers the costs associated with recovering and securing compromised personal data.
• Cyber extortion – Covers the costs associated with ransom payments and professional fees to resolve extortion threats.
• Online shopping fraud – Protects against financial losses from scams and fraudulent transactions.
• Cyberbullying – Some policies include coverage for costs associated with cyberbullying incidents.

Is personal cyber insurance worth it?

Yes, in many cases, personal cyber insurance is worth the cost, as cybercrime is on the rise. According to the Canadian Anti-Fraud Center, 33,854 fraud reports have been processed as of September 30, 2025, resulting in $544 million in losses ( $648 million in 2024).

While the reality of a cyber attack happening to you may seem unlikely, it can pose a serious threat that you want to be prepared for. Here are some real-life scenarios where personal cyber insurance can protect you.

Situation one: Your identity is stolen

Identity theft is on the rise and carries significant financial consequences. It occurs when someone uses your personal information to open credit accounts in your name and leaves you responsible for the bill. Personal cyber insurance covers the costs of restoring your identity.

Situation two: You’re the victim of a ransomware attack

A ransomware attack occurs when a criminal locks you out of your device, account, or files and demands payment to restore access. We’re all at risk of an attack, and many Canadians who store valuable data on their personal networks would likely be willing to pay a lot of money to recover it if it were ever held ransom. If you are targeted by ransomware and need to pay to regain access to your data, personal cyber insurance will often cover the ransom and the costs associated with negotiation and data restoration.

Situation three: You’re the victim of online fraud

Phishing scams are a common type of cyberattack where cybercriminals trick you into clicking a link that captures your personal information, such as credit card details or passwords. If you fall victim to a phishing scam resulting in unauthorized bank transactions, personal cyber insurance helps recover lost funds and secure your accounts.

Even if you’re digitally savvy, it’s always better to be overprepared and protected than to regret it when it comes to your personal information.

Does my home insurance cover cyber risks?

Most home insurance policies do not fully cover cyber risks. Home insurance typically protects against physical damage to your property and personal liability, but doesn't extend to digital threats. Cyber risks, such as online fraud and data breaches, require specialized coverage. However, you may be able to add an endorsement to your home policy for certain coverages, such as identity theft.

What’s the difference between personal and commercial cyber insurance?

Personal cyber insurance and commercial cyber insurance both offer coverage for the financial impact of cybercrime, but they serve different purposes and different customer bases.

In summary, while personal cyber insurance focuses on individual protection, commercial cyber insurance is tailored for businesses to manage and mitigate risks associated with cyber threats that affect their operations and customer data.

Where can I get personal cyber insurance in Canada?

Not all P&C insurance companies offer personal cyber insurance, but as digital threats continue to grow across Canada, it's expected that more providers will offer such coverage. Here are two examples of companies that currently provide specialized insurance:

Aviva Canada – Aviva offers a personal cyber insurance endorsement (an add-on to your current home coverage). The insurer provides coverage against a long list of threats, including online fraud, computer attacks, home systems attacks, identity recovery, data breaches, cyberbullying, and cyber extortion. On top of that, the company provides dedicated support with their team of cyber response experts, along with additional coverage for well-being benefits (e.g. mental health counselling after a cyberbullying incident).

Wawanesa Insurance – Wawanesa also offers cyber coverage as an addition to a personal policy. This includes coverage against common digital threats such as cyberattacks, cyber extortion, online fraud, and data breaches. You can also purchase cyber insurance for your business through the insurer.

The bottom line

Investing in personal cyber insurance is a wise choice to protect yourself from the financial toll of cybercrime. This insurance provides protection against many scenarios, including identity theft, online fraud, ransomware attacks, and cyberbullying, ensuring you have support to recover from digital threats.

As cyber risks continue to evolve, cyber insurance can provide you with the peace of mind and financial security necessary to navigate the online world safely. Consider your digital habits and potential vulnerabilities to decide if this coverage is right for you.

Also read:

• E-commerce insurance: How to protect your online business
• Do I need insurance for my side hustle?
• The rise of AI and financial scams