Cyber liability insurance covers costs associated with cyber fraud. A data breach can cost hundreds of thousands, or even millions, of dollars in legal expenses and fines. Data breach insurance is a key component to any risk management plan and can be tailored to suit your business’ unique needs.
Types of Coverage
There are two types of data breach insurance coverage, first-party and third-party. First-party coverage helps a company address its own business needs after a breach. Third-party coverage protects the company in lawsuits brought on by business partners or customers affected by the breach. The following are examples of first-party costs:
- Government-mandated notification of all persons whose information may now be compromised
- The retainment of a public relations team to restore the business’ reputation
- The retainment of cyber extortion professionals to handle threats to your information systems
- Customer credit monitoring
Third-party costs can include:
- Legally obligated payments or settlements to others harmed by the breach
- Employee privacy liability, in the case that employee data is stolen
- Electronic media liability, in the case that another company’s copyright is infringed
Cyber crime is perpetrated against both small and large companies, across all business sectors. Data breach insurance can mitigate costs if your business is affected.