Theft and Recovery of Identity: Insurance Coverage
Because identity theft currently affects about 10 million consumers per year, there has been an interest in identity theft coverage offered by insurance companies to help deal with this problem. Although identity theft victims are not responsible for what happens to them, they are often the ones left with the burden of correcting everything and regaining their identity and reputation. Studies show that it requires approximately two hundred hours for victims to make everything right again with their "identities," restoring credit, dealing with banks and other financial institutions, etc. Since identity theft is usually unexpected, many of the victims must deal with this extra responsibility at the most inopportune times, disrupting other life and work schedules.
Identity Theft Coverage: Pros and Cons
Identity theft coverage has most recently been taken up by companies who are interested in helping their employees who are victims of identity regain stability in their lives without so much lost productivity at work. Clearly, if a victim generally spends about two hundred hours correcting all the wrongs, and if he or she is trying to do all this as quickly as possible, it seems obvious that some of this time will occur during work occurs, resulting in less productivity. Even if a victim does not take off work to deal with credit card companies, banks, and other agencies, the stress this crime causes will result in an employee who is less able to focus and concentrate on work because of personal worries.
To meet this need and respond to the rising number of incidences of identity theft, many companies are now providing identity theft coverage to their employees. This coverage is helpful because it provides victims with a case manager who is supposed to help them go through the recovery process and save them time and money because of the case manager's expertise in dealing with the problem. This coverage is actually amazingly inexpensive, but many companies are providing it to their employees free of cost because they believe it will increase their productivity and help the employees become more efficient, even while dealing with this crisis.
However, despite the seeming benefits of this coverage, there are detractors who say that this kind of coverage is unnecessary and a waste of company money because there are non-profit agencies out there that are likewise available to help victims reconstruct their lives and financial reputations after identity theft occurs. Additionally, prepaid legal services--where people pay $20 to $25 a month for legal services and consultations--also offer legal support and advice for those undergoing the recovery process.