Cyber Insurance
Cyber coverage responds when your systems or your customers' data are compromised. It splits into two halves that are easy to confuse.
First-party covers your own costs: breach response and forensics, notifying affected customers, credit monitoring, restoring data, business interruption while you're down, and in some policies ransomware payments.
Third-party covers claims brought against you by customers or partners whose data was exposed.
When It Comes Up
An employee clicks a convincing invoice and credentials get used to divert a payment. Ransomware locks the scheduling system. A laptop with customer records goes missing.
You May Already Be Required to Carry It
Payment processor agreements and some client contracts require cyber coverage. It's worth reading yours before deciding you don't need it.
What It Doesn't Do
It doesn't cover the money you were tricked into sending unless the policy specifically includes social engineering or funds transfer fraud, which is often a separate sublimit. Check that one specifically.
Questions People Ask
Do I need cyber insurance if I only take credit cards?
Taking cards means holding payment data, and processor agreements often require coverage. It's a contract question as much as a risk question.
Does cyber insurance cover ransomware?
Many policies do, often with sublimits and conditions.