Cyber Insurance

Cyber insurance is one option that can help protect your business against losses resulting from a cyber attack. If you’re thinking about cyber insurance, discuss with your insurance agent what policy would best fit your company’s needs, including whether you should go with first-party coverage, third-party coverage, or both. Here are some general tips to consider.

General Cover

General cover should include:

• Data Breaches (like in
• Cyber attacks on your data held by vendors and other third parties
• Cyber attacks (like breaches of your network)
• Cyber attacks that occur anywhere in the world (not only in the United States)
• Terrorist Acts

Also consider:

• Defend you in a lawsuit or regulatory investigation (look for “duty to defend” wording)
• Provide coverage in excess of any other applicable insurance you have
• Offer a breach hotline that’s available every day of the year at all times

First Party Coverage

• Legal counsel to determine your notification and regulatory obligations
• Recovery and replacement of lost or stolen data
• Customer notification and call center services
• Lost income due to business interruption
• Crisis management and public relations
• Cyber extortion and fraud
• Forensic services to investigate the breach
• Fees, fines, and penalties related to the cyber incident

Third Party Coverage

• Payments to consumers affected by the breach
• Costs for litigation and responding to regulatory inquiries
• Claims and settlement expenses relating to disputes or lawsuits
• Other settlements, damages, and judgments
• Losses related to defamation and copyright or trademark infringement
• Accounting costs