What is First-Party Cyber Coverage?

Business owners who don't have cyber risk insurance usually say that the price of such insurance is the main deterrent. The cost of cybercrime globally was $8.44 trillion in 2022. By 2026, experts estimate that cybercrime costs worldwide will exceed $20 trillion, an increase of almost 150% compared to 2022.

LINKS:
____________________________________________

____________________________________________

Clearly, companies can’t afford not having cyber coverage. All forms of cyber coverage cover a form of risk that, no matter how improbable you may think it is, happens every day across the U.S. Whether hackers hold your data for ransom, someone steals your company’s financial information, or all the computers at the company blow away in a hurricane, cyber risks are everywhere. In a world where data exists everywhere, you can’t afford not to protect your company.

First-party cyber coverage provides financial assistance to mitigate the impact of data breaches and cyber attacks for small businesses. It covers the cost of things like…Communicating with affected customers… Providing credit monitoring… Executing PR and reputation management campaigns… and other recovery activities. As you can see, these are all expenses incurred following a cyber incident on a business’s network systems. First-party cyber insurance is often bundled with errors and omissions insurance. This policy is crucial for businesses, especially those that store sensitive client or customer information online. Such information can include credit card numbers or Social Security numbers.

In a hypothetical situation, if an employee writes down a password and leaves it in plain sight, your business could become the victim of a data breach. First-party cyber insurance could help pay for expenses related to the fallout of the incident.

Cyber risk is more prominent than ever…which is also making insuring cyber risk more complex. Whether it’s ransomware, phishing emails with malware embedded, or social engineering attacks, many companies find themselves the target of a cyber attack. For many leaders at these companies, a cyber insurance policy holds a lot of value. You would never open a business without the proper amount of commercial property insurance. So why wouldn’t you have cyber insurance and leave your data at risk? Whether you run a home-based business or a large corporation, data is more than a number on a screen. It is everything. Make sure you protect your business with the right level of first-party cyber insurance.

#cyberinsurance #cybercoverage