Cyber liability insurance won’t prevent a hack, but it will help you recover from one. There are two main types:
- First-party coverage, which responds to losses resulting from cyberattacks on your business network
- Third-party coverage, which responds to cyberattacks on others’ systems or networks
Here’s a breakdown of the coverage in cyber liability policies.
You can’t outsource your liability
Even if you use cloud-based software hosted by another company, it doesn’t relieve your liability. You could be named in a lawsuit or required to provide free credit monitoring services to your customers. Depending on the severity of the breach, a vendor’s insurance limits might not be enough to cover their clients.
Takeaways
- Implement cybersecurity measures: train employees, use multifactor authentication, update your software and require strong passwords.
- Evaluate your vendors’ and partners’ cyber liability insurance and protection protocols.
- Create a cybersecurity and data breach response plan, including insurance.
Cyber liability insurance doesn’t prevent hacks, but it provides essential support for recovery. Contact us today to ensure comprehensive coverage.
