Cyber Coverage In Depth – First Party

In a world where thousands of data breaches occur every year, it’s critical to know where you could best protect your business with regard to network and cyber security. The most immediate concern when a network is compromised is likely to be what first party cyber liability coverages would respond to. These things could include some or all of the following:

• Investigation of when, where, and how the breach occurred
• Ransom payments if a company’s data is held hostage
• Public relations to manage the breached company’s reputation
• Promptly informing a company’s customers of a breach
• Providing credit monitoring services to customers affected

These types of coverages are intended to respond to occurrences that a company will immediately have to manage. As the costs of just one of these resolutions can be incredibly costly and time consuming, it is in the best interest of any company who uses computers connected to the internet (i.e. virtually everyone) to determine what out of pocket expenses would be incurred if a cyber attack were to happen versus the incurred costs from an annual policy’s premium and deductible. As previously blogged, cyber extortion is at an all time high and even the smallest, one-person firm can have slightly annoying to irreparable damage occur just by an accidental click of a mouse.

It’s important to point out that Cyber Liability Coverage is a relatively new product in the insurance market and as such, is constantly changing and evolving very quickly. As a result, the aforementioned information could be different in the future and it’s best to consult with your insurance professional to make sure they find the right policy for you.