Facebook iconTwitter iconLinkedIn iconEmail icon

First-party cyber liability insurance

First-party cyber liability insurance protects small businesses against the financial impact of data breaches and cyberattacks.

What is first-party cyber liability insurance?

First-party cyber liability insurance provides financial assistance to mitigate the impact of data breaches and cyberattacks at your small business. It covers the costs of:

  • Communicating with affected customers
  • Providing credit monitoring
  • Executing PR and reputation management campaigns
  • Other recovery activities

What is the difference between first-party vs. third-party cyber insurance?

First-party coverage is designed to lessen the financial impact on the company that bought the insurance (the insured).

Third-party insurance provides liability protection in case the insured company makes a mistake that results in a client or entity suffering a data breach or cyberattack.

Another way of viewing this distinction:

  • First-party coverage is like commercial property insurance. It covers a company’s own damages from covered cyber losses.
  • Third-party coverage is like general liability insurance. It covers legal expenses that result from a firm being blamed for causing another firm’s cyber losses.

What are some common claim scenarios for first-party cyber liability insurance?

First-party cyber insurance can cover a variety of insurable events, including:

  • Someone maliciously destroys your data.
  • A hacker launches a denial of service (DoS) attack against you.
  • Someone plants a virus, malware, or spyware on your computer hard drive.
  • An employee accidentally destroys a database.
  • A power surge wipes out your business server.
  • A natural disaster destroys your computer hardware.
  • Someone holds your computer data for ransom.

Compare quotes from trusted carriers with Insureon

Insureon helps small business owners compare commercial insurance quotes with one easy online application. Start an application today to protect your business against legal liabilities.

Compare cyber liability insurance quotes
Save money by comparing insurance quotes from multiple carriers.
Learn More
See how cyber liability insurance protects you against data breaches and cybercrimeTop cybersecurity threats for e-commerce businessesTips for managing risks and hidden threats to your tech startupLearn about third-party cyber liability insurance
Topics