It is no longer uncommon to read about cyber crimes and data breaches in the news. Cyber risk is inherent in any business that uses an information system to store data, which is just about every business in the 21st century. Depending on the attack, data breaches can be quite expensive for both companies and their clients. Thankfully, there is cyber liability insurance to help cover costs if your company is defrauded.
Two Types of Cyber Liability Insurance
First-party coverage is financial compensation that addresses critical business and customer needs. Third-party coverage protects businesses in the event that a customer or partner files a lawsuit due to a data breach. First-party coverage may include costs associated with:
- Forensic and legal services to determine the scope of the breach
- Public relations and crisis management to maintain or restore the company’s reputation
- Notification of clients and employees who may be affected
Third-party coverage may include costs associated with:
- Judgements or settlements the company must legally pay to those affected by the breach
- Electronic media liability, such as copyright or domain name infringement
- Employee privacy liability and network security liability
Business of all sizes and across all sectors carry some cyber risk. With cyber liability insurance, you can minimize the damage done to your company if you become a victim of cyber crime.