Cyber liability insurance helps cover financial losses resulting from data breaches and other cyber incidents. Coverage can vary significantly because insurers often use their own customized forms. Many policies offer both first-party and third-party coverages.
First-party coverages address direct expenses a business incurs due to a breach. Third-party coverages handle damages or settlements a business must pay due to claims or lawsuits from others affected by the company's actions or inactions. For example, if a therapist's computer system is hacked, exposing client treatment records online, the therapist could be sued for negligence.
Cyber policies typically offer a range of coverages, some included automatically and others optional. Separate limits may apply to each coverage, and some coverages may only activate after the business has met a deductible or retention.
dAny business with an online presence or that handles electronic data can benefit from cyber insurance. This includes businesses in city and beyond, especially those relying on technology for operations.
Cyber criminals often target personal data such as customer or employee contact details, intellectual property, and sensitive financial information. There's also a risk of ransomware attacks that can paralyze a network. Cyber insurance covering ransomware can help businesses navigate and recover from such crises.
As cyber threats evolve, so must your insurance coverage. Understanding how traditional and other property and casualty insurance policies interact with cyber risks is crucial. Contact our insurance agency today to learn more about protecting your business.