Differentiating Between First-Party and Third-Party Cyber Risk Insurance

Cyber risks to businesses of all sizes and industries continue to grow and evolve globally. It is a goal of the insurance industry to keep pace with developing and providing insurance products to reduce cyber-attack exposure for their clients. Due to the rapidly changing nature of this fairly new type of insurance, there is some lingering confusion around differences between first-party and third-party cyber risk coverage. In order to select the most appropriate coverage for your business, it is helpful to have a basic understanding of both types of Carmel cyber risk insurance.

First-Party Cyber Risk Insurance

First-party cyber insurance provides coverage for data owned by your company such as sensitive customer personal information. In the event of a data breach, first-party cyber risk insurance may aid in covering the costs of client notifications, providing credit monitoring services to those with compromised personal data, cyber forensics investigations and data recovery or recreation.

Third-Party Cyber Risk Insurance

Third-party cyber risk insurance is for those responsible for an attacked or hacked system. This includes software developers, IT companies or contractors responsible for network safety.

It helps to keep these differences in policy coverage in mind when considering Carmel cyber risk insurance. The optimal policy for you will depend on the type of business you conduct.