Third-party coverage
Third-party coverage in cyber liability insurance protects businesses against claims and lawsuits brought by external parties, such as customers, clients, vendors, or regulatory bodies, alleging damages due to a data breach or cyber incident. This coverage focuses on mitigating the financial liabilities and legal expenses associated with defending against and settling claims from third parties affected by a cyber event.
Third-party coverage in commercial cyber liability insurance is a vital component of your business’s risk management strategy in an increasingly digital world. By investing in this coverage, you can safeguard your business from the financial and reputational repercussions of data breaches, cyber attacks, and other cyber incidents affecting external parties.
Key Components of Third-Party Coverage
Covers legal fees, court costs, and expenses related to defending against lawsuits or regulatory investigations stemming from a data breach or cyber incident.
Provides coverage for settlements or court-ordered judgments that your business may be required to pay to affected third parties as a result of a cyber incident.
Covers fines and penalties imposed by regulatory bodies for violations of data protection laws or regulations resulting from a data breach.
Covers expenses associated with notifying affected individuals or entities about a data breach, including costs for providing credit monitoring services.
Provides coverage for expenses related to managing public relations and reputational damage resulting from a data breach or cyber incident.