Here’s what you need to know about each type of first-party liability:
Cyber Extortion Loss
If the business had to transfer any money to get out of a ransomware attack, the amount might be included in the policy’s reimbursements. The policy may also cover the cost of hiring specialists, experts, negotiators, investigators, and consultants who can help the firm escape the situation with minimal damage.
Data Protection Loss
If the business loses any sensitive data or customer data is made public, it might be liable to specific damages. A good cyber insurance policy will cover the expenses necessary to cover these liabilities.
Business Interruption
If your business is shut down due to a cyber or ransomware attack, your policy can cover the resulting loss of revenue.
Cyber Forensics Expense
This liability can cover the cost of hiring an expert to determine the existence and cause of any actual attack.
IT Post Breach Service
This covers the cost of hiring a team of financial experts who monitor the firm’s standing creditworthiness post-attack. This includes the required 18-month credit monitoring.
Social Engineering Fraud
This liability includes a built-in coverage sub-limit against a manipulate individual impersonating someone at your company to steal funds.
Third-Party Damage
After a cyberattack is executed, the enterprise may enter a legal battle against several entities. It might be liable to pay dues for compromised intellectual property, breach of privacy, negligence of obligations, damage to public repute, and quantifiable damage to third-party businesses. This can quickly add up! The good news is that most comprehensive cybersecurity insurance plans will cover both the legal expenses required to go through these processes as well as the amount payable to third parties.
If you have questions regarding your cyber policy, please reach out to your Account Executive or Pete Elliott at pje@telcominsgrp.com. You can never be too educated about cyber security, so contact Telcom Insurance Group today!
