In the event that a cyber attack does happen, you will want to make sure you and your business are protected from the fall out. This is where Cyber Liability Insurance comes in. Cyber Liability Insurance can cover:
- Data loss and system damage
- Business interruption
- PR/Crisis management
- Notification expenses
- Regulatory investigation expense
- Content liability
While cyber insurance is still relatively new to the insurance world, it is very complex and diverse. However, most cyber insurance will still fall into two types of coverage.
The first type is first-party coverage. This type of cover is designed to cover costs associated with the direct response to a cyber-attack. This means that if an attack occurs, first-party coverage will provide funds to help immediately. Some examples of first-party coverage include the cost of credit monitoring and crisis management, legal advice related to an event, and hardware replacement or data restoration.
The second type is third party liability. This type of coverage is designed to cover associated costs that arise from a cyber event. This means that if an attack occurs, third-party liability will provide funds to help with delayed costs. Often, the costs of a cyber-attack exceed the first party coverage amounts. Some examples of third-party liability include the cost of privacy liability lawsuits brought by employees or customers affected by a data breach, a breach of contract or negligence lawsuits, and investigations, fines, and penalties levied by regulators.