Cyber Insurance

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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