Financial Protection for IT Incidents

The world of tech and data security is rapidly changing, leaving many businesses unable to handle the IT demands of operations, infrastructure, and security on their own. As a result, many companies outsource their IT needs to industry experts, but this doesn’t absorb the company from liability issues related to a data breach or other issues of cyber threat.

Addressing the Threat

As businesses are responsible for their client’s online security, third-party cyber liability insurance is recommended by the information on  https://www.fgib.com as a form of liability protection. When a client experiences a breach, the resulting lawsuit filed against the company could be covered by the cyber liability policy. A business that could benefit from this coverage include:

  • Software developers
  • IT consultants or installers
  • App developers
  • Network servicers
  • Security consultants
  • Website management
  • Website design

While this form of insurance can be purchased as a stand-alone policy, it is sometimes included with a tech’s professional liability plan. The inclusions of coverage often address privacy liability, cyberthreat infringements, and data breaches on account of either its actions or lack of actions.

Differences from First-Party Coverage

If your IT department is outsourced, third party coverage should be enough to address your risks. However, if your business has its own network, you may need first-party cyber liability to protect from any fallout associated with a direct breach to your system.