The Ins & Outs of a Cyber Insurance Policy

In our greatest moment of need, we want to know that we are going to be saved. Nothing is more unnerving or frightening than going into a situation blind. When your small business holdings have been blindsided by a cyber attack, it'll feel like the rug has been pulled out from under you. If you get a cyber insurance policy, a cyber attack will seem just like any other slight disturbance we experience. A cyber attack would still be a nuisance, sure, but nothing compared to having no policy at all.  

The 411 on Cyber Insurance
As we have come to learn, no business is safe from a cyber attack, no matter its size. There are several different types of cyber insurance coverage, each specializing in a particular form of coverage. Insurance companies who have begun selling cyber insurance policies offer first and third-party packages for cyber attacks. What is the difference between first and third-party coverage?

Let's take a look:

First-party coverage: This insurance type covers the policyholder's personal data, loss of income and business in the result of a data breach.

Third-party coverage: This insurance type covers the policyholder for the liability of third parties, such as customers and clients in the event of a cyber attack.

As a small business, you're going to want to invest in both first and third-party coverage plans. Consider this: according to Forbes Magazine, nearly 60 percent of all small businesses who experienced a cyber attack closed for business six months after their company suffered a data breach. Without cyber insurance, small businesses have a very difficult time getting back on their feet and staying afloat. Cyber insurance serves and protects both you and your customers.

Let's take a look at some first and third-party insurance plans that'll keep you feeling cool as a cucumber should you and your business be victim of a cyber attack.

First-Party Insurance Coverage

Extortion: This insurance type covers the financial costs that come with investigating the cyber criminals threatening to release confidential information to the public.

Business Interruption: This insurance type covers the policyholder's loss of income and business.

Data Loss: This insurance type covers the loss and damage of your company's electronic assets. This includes coverage for hardware, software and restoring data.

Theft: This insurance type covers the financial costs of the loss of or damage of the policyholder's data.

Third-Party Insurance Coverage

Litigation: This insurance type offers financial coverage for costs relating to lawsuits, settlements, judgments and penalties as the direct result of a cyber attack.

Media Liability: This insurance type offers financial coverage for trademark or copyright infringement.

Privacy Liability: This insurance type offers financial coverage for liability to both customers and employees in the event of a security breach.

Credit Monitoring: This insurance type offers financial coverage for fraud and credit monitoring and other such services when an employee or customer has been directly affected by a cyber attack.

We all want to feel safe in the world we live in, and that includes the health of our business assets. Visit CyberPolicy today to secure your business.  

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