When considering types of insurance to buy, many people gloss over an important type of insurance for their businesses: cyber liability. While some may think a slip and fall or other workplace accident is the most likely reason they need insurance coverage, cybercrimes and data breaches are becoming increasingly common workplace “accidents” that require insurance as well. Below are two types of cyber liability insurance that every business should consider obtaining before they’re the victim of a cyberattack.
First-party coverage. When hackers strike your secure server and wipe out business records and other crucial online documents, there is a real cost to that. Coupled with the cost of informing your customers, purchasing equipment, upgrading software, and engaging information technology professionals, there is the likelihood of a substantial financial loss. First-party coverage pays for damages directly suffered by your business.
Third-party coverage. A cyber breach can impact your clients and partners in ways not foretold. Unfortunately, this sometimes leads to litigation or other claims for damages from others, which can take a larger toll than the breach itself. Third-party coverage helps ensure that you have a policy in place to cover others’ losses as a result of a data breach impacting your business.
Let us help you review your cyber liability policy in order to make sure you have the coverage you need to safeguard the business you’ve worked so hard to build.