Understand the Key Benefits of Your Cyber Insurance Policy

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It is typically imperative that companies have the right measures in place to protect delicate information. Even still, in those instances when businesses are attacked, the right cyber insurance can be very helpful. When selecting a plan, there are a few key benefits to look for.

Type of Policy

Though many companies may offer varying plans, there are two main types of cyber liability insurance:

  1. First-party coverage
  2. Third-party coverage

There is a strong difference between the two, and they each have specific benefits you want to pay attention to.

First-Party Coverage

Depending upon the plan chosen, first-party coverage may cover legal fees resulting from determining if a breach has actually occurred and may also assist with protecting both the business and its clients. Some key benefits to look for include the following:

  • Legal or forensic services
  • Crisis management
  • Cyber extortion reimbursement

These and other benefits may be found in quality plans.

Third-Party Coverage

In the case that a data breach occurs and a business is sued by its clients or a business partner, a third-party defense and liability coverage plan can be helpful. These are the major benefits that should be included in your plan:

  • Legal fees and obligations
  • Employee privacy liability coverage
  • Privacy and network security liability coverage
  • Electronic media liability coverage

Having these benefits in place can aid in alleviating financial strain on the company during and after the lawsuit.

These are just some of the main benefits you should look for in your cyber insurance policy. Depending upon your business needs, other policy benefits could be useful. Speak with a representative today to review your options.

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