Cyber Insurance covers financial losses that result from data breaches and other cyber-attacks. In general, there are 2 types of coverage offered:
First-party coverage: this pays for expenses your firm suffers as a result of cyber-attacks such as:
- The cost of informing your clients of the hack and providing them with free credit monitoring services.
- Cyber extortion like ransomware attacks
- Loss or damage to electronic data
- Loss of income and extra expenses
- PR and reputational damage
Third-party coverage: this pays for 3rd party liability that has suffered a loss as a result of your actions or omissions. For example, you could be sued by a client who has their information leaked following a hack of your computer systems.