Cyber security insurance is a type of insurance that offers protection if you are hacked or otherwise targeted by a malicious person online. Most insurance comes in third and first-party. Often you can also find an option that combines the two. Be aware that some providers will have exclusions and provisions. It’s important to read the paperwork to be sure you are getting what you need from a policy.
First-party coverage is the type typically used by businesses. It offers you compensation if data or software are lost of damaged in an attack. This type of policy will also protect you in the case of higher operation costs or lost business opportunities due to having no access to your system. It also often covers cyber extortion and money that is stolen through an online crime.
Third-party cyber security insurance is geared toward companies that are managing the network or system of a third-party company. The plans for this type of business will offer coverage if a breach of security leads to loss of employee confidentiality or loss of customer information and data. It also handles customer notification following a breath and combating any defamation or intellectual-property violations as a result of the breach.
Regardless of which option works best for you, it’s important to be covered for when disaster hits. Be prepared so your business doesn’t need to deal with negative consequences.