As we move into a technology centric business environment, the risks of data breaches and cyber attacks have never been greater. Companies who fall victim to a data breach are often met with suits brought against customers, employees or vendors who had their data compromised. A cyber liability insurance policy covers the financial losses associated with a data breach or cyber attack.
What Does Cyber Liability Insurance Cover?
In the event a data breach or cyber attack occurs, most cyber liability insurance policies include first and third party coverages. Depending on your policy, these first and third party coverages may involve paying a deductible.
First Party Coverages
With first party coverages, a cyber liability insurance policy will cover the financial losses and expenses that are directly correlated with the data breach or cyber attack. Common first party coverages include:
- Replacing or restoring electronic data that has been damaged or stolen
- Covering any extra expenses due to the breach or attach and loss of extra income
- Payments and or expenses resulting from an extortion
- Costs associated with notifying parties affected by the breach or attack
- Expenses tied to repairing and restoring reputational status
Third Party Coverages
Third party coverages are applied when claims and suits are brought against your company by individuals or companies who have been affected. These coverages are applied to defense costs, damages and or settlements. Typical third party coverages include:
- Network security liabilities
- Media liabilities
- Regulatory agency proceedings
Speak To A Business Insurance Broker Today
It has become increasingly more common for companies who experience a data breach or cyber attack to suffer serious financial losses and complete liquidation. Make sure you protect your company against these risks by acquiring a cyber liability insurance policy with Pro Insurance Group. For more information or to acquire a policy today, give Pro Insurance Group a call at 833.619.0770 or request a quote online.