Key Considerations When Selecting the Right Cyber Insurance Coverage

Is your practice prepared to confront today’s growing cybersecurity threats?

Although adopting the latest technologies and industry trends is undoubtedly crucial, it is equally important to ensure that your practice has the best cyber liability insurance. Think of it as an invisible shield protecting your practice from devastating losses. However, to harness its full potential and ensure robust protection, it is critical to have a nuanced understanding of it.

In this blog, we’ll delve into the key considerations when shopping for cyber liability insurance. But before we do that, let’s first understand the difference between first-party coverage and third-party coverage.

First-party coverage vs. third-party coverage

Every practice today needs cyber liability insurance. To help practices quickly respond and recover from data breaches, insurance providers have developed two types of cyber liability insurance – first-party coverage and third-party coverage.

Here’s how they differ:

1. Focus of coverage

First-party coverage:

• Shields the insured practice
• Protects against direct losses and expenses resulting from a data breach

Third-party coverage:

• Focuses on liabilities from third parties
• Covers claims made by third parties who suffered losses because of the insured practice’s cyber incident

2. Costs covered

First-party coverage:
• Covers only the insured’s direct costs
• Pays for revenue loss, forensic investigations, data restoration, public relations and customer notification services

Third-party coverage:

• Pays for practices’ legal expenses
• Covers cyber-related liabilities, such as data breaches, privacy violations and defamation

Learn More: https://www.tier3md.com/key-considerations-when-selecting-the-right-cyber-insurance-coverage/