What is cyber liability insurance?
The cyber liability insurance for IT industry is designed to provide you with protection and support in cases where company confidential information is stolen or compromised.
Cyber liability insurance covers direct claims arising from cyber risks and claims against third parties.
Cyber insurance is needed by anyone who is in touch with confidential information (personal information, credit card numbers, checking accounts, health information, driver’s license information and any other information related to the identity of a particular person or his or her financial and health status) .
The most vulnerable sectors are: financial sector, technology and IT sector, energy and environment sector and the pharmaceutical and healthcare sectors.
What types of dmages are covered by cyber liability insurance?
There are two types of damages to cyber liability IT insurance. First are direct damages that result from cyber risk and affect the business of the company, and second are damages that occur to third parties.
Cyber liability insurance for direct damage is designed to help businesses cope with high costs in cases of data breaches.
Third-party cyber liability insurance is tailored for situations where your client suffers a data breach and sues your business for damages. Because the cost of data breaches can be very high, your client may have an even stronger motive to sue their IT service provider and seek coverage for their losses. If this situation arises, IT cyber liability insurance can help you pay for attorney fees, court costs, out-of-court settlements, or judgments.