FIRST VS. THIRD-PARTY CYBER COVERAGE

As cyber risks continue to evolve and insurance providers work to reduce exposure for commercial clients, confusion persists regarding first- verses third-party cyber insurance coverage.

For many companies – particularly a tech company that deals with other businesses – third-party cyber coverage if often much more important than first-party coverage.

First-party cyber coverage – protection for the data you own, such as information that pertains to your customers or employees

Third-party cyber coverage – provides protection for liability associated with your customers’ data, among other things.

The bottom line, talk thoroughly with your insurance advisor about your operations so they can help you correctly cover all your exposures in this area.