What is cyber insurance?
Cyber insurance provides businesses with peace of mind, protecting them from the potentially financially devastating repercussions associated with cyber-attacks like computer hacking, ransomware, data theft and data destruction.
When you purchase cyber insurance, you'll find that most policies provide first-party and third-party coverage. First-party coverage is when an insurer covers you for loss or damage that directly affects you or your business. For example, if your business is hit with a denial of service (DOS) attack, flooding your server with traffic in the final days of a campaign, resulting in your business losing thousands of dollars, first-party coverage can reimburse you.
Third-party coverage relates to claims made against your business by someone that has been negatively affected by a cyber issue involving your company. For example, if a hacker steals a customer's personal data and they sue you for negligence, third-party coverage can cover you for the legal and compensation costs.