Almost all business is conducted on the internet in some capacity these days. While data has become a valuable resource, it is also a huge liability. The data your company has access to makes it a target for all kinds of cyber attacks. Thankfully, there are ways to stay protected. Taking out appropriate insurance for such scenarios is key. However, you need to make important decisions like whether to use a third party or first party provider.
Determining the Advantages of Each Program
Weighing out the benefits of first party vs third party cyber insurance will help you find the right solution for your organization. With a first party structure, you will be responsible for paying all of the costs and fees associated with informing your employees, customers, and investors of the situation. With a third party provider, you’ll have to pay all of the legal costs that are associated with this type of data breach. Taking time to look at your financial responsibility with each arrangement will help you make the right decision. When looking at the costs, consider who pays for:
- Reimbursement for cyber extortion
- Liability costs of network security
- Expenses related to business interruption
Research Your Options
Making the best decisions can take time. Look over the details of third party and first party cyber insurance to get a better feel for what makes sense for your business. With enough research, you’ll have all the information you need to make a choice that works.