Whether you have already instituted a plan or are considering your options for your cyber liability coverage, there are a few things that you should keep in mind. Properly understanding your policy is essential to getting the most from your plan. Check out these key aspects of a policy.
Type of Liability Coverage
They type of liability insurance you select will have a big impact on what benefits you will have access to. The major cyber liability insurance options are:
- first-party coverage
- third-party defense and liability coverage
First-party coverage protects the business and its customers by instituting preventative measures, examining if there is a breach and quickly addressing it. On the other hand, third-party coverage pays for expenses related to lawsuits brought by clients or business partners due to a data breach.
Who is Covered
Every policy is different, and it is important to understand who is covered in your policy. For instance, some third-party liability plans may provide employee liability coverage and protect your business against employee error, while others may not. This can be an important factor to consider.
Scope and Requirements of Coverage
Though a benefit is offered it does not mean that it provides the coverage that you need. Also, there may be specific requirements or stipulations to utilizing certain benefits. Understanding this up front can help you to properly implement your plan.
Taking your time and fully examining your cyber liability policy can help you to understand these key factors. If there are any terms or benefits that you do not understand, consult with your local agent.