Two Types of Cyber Risk Insurance
When you are considering offering cyber risk insurance to your clients, you will first need to recognize what types of coverage that involves. There are two main types of cyber insurance policies. Each type of policy has its own set of coverage areas to consider.
First Party Response
First party response cyber risk insurance pays for what your clients will need immediately after an attack. Crisis management, customer notification, credit monitoring, business interruption expenses and many other items are covered under this type of policy. This insurance can even cover costs of cyber extortion and forensic services. Whatever services are needed in direct response to an incident are covered by first party response policies.
Third Party Defense and Liability
In the event of a lawsuit, your clients will want to have third party defense and liability coverage. This type of policy pays out should one of their customers sue after a cyber attack. These policies cover the cost of any settlements or judgments incurred, as well as media liability coverage and potential coverage for employee privacy liability.
Offering one or both of these types of cyber risk insurance to your clients is an incredible opportunity for all parties involved. Your clients get the security of knowing that they won’t be destroyed by a cyber attack or a related lawsuit, and you get to expand your client base. It’s a win-win situation.