First-party coverage
First-party coverage in cyber liability insurance protects your business directly against the immediate costs and expenses incurred as a result of a cyber incident or data breach. Unlike third-party coverage, which protects against claims from external parties (such as customers or business partners), first-party coverage focuses on the internal costs and damages your business may face following a cyber event.
First-party coverage in commercial cyber liability insurance is a critical component of your business’s risk management strategy in today’s digital landscape. By investing in this coverage, you can protect your business from the financial ramifications of cyber incidents, ensure regulatory compliance, and maintain customer trust in the event of a data breach or cyber attack.
Key Components of First-Party Coverage
Covers expenses related to notifying affected individuals, providing credit monitoring services, and managing public relations to mitigate reputational harm.
Protects against costs associated with responding to ransomware or cyber extortion threats, including ransom payments and expenses incurred to recover or replace compromised data.
Covers income losses and extra expenses incurred as a result of a cyber incident that disrupts your business operations, such as costs related to temporary IT solutions or loss of profits.
Covers expenses associated with restoring or recreating lost or damaged data due to a cyber event, including costs for forensic investigations to determine the extent of the breach.
Covers legal fees, fines, and penalties resulting from regulatory investigations or lawsuits related to a data breach or cyber incident.