Cyber insurance policies typically offer two types of coverages: first-party and third-party coverages. 

This piece reviews some third-party coverages that protect the insured's legal liability to clients, prospects, or other stakeholders they have in their database.  Examples of third-party coverages commonly included in cyber insurance policies include:

• Data breach liability: Provides coverage for legal fees and damages awarded to clients, prospects, or other stakeholders following their private information being compromised.
• Network security liability: This coverage provides indemnity for legal fees and damages awarded to third parties due to a security failure that allows unauthorized access to their systems or data.
• Media liability: Compromised date can result in patent and intellectual property infringement. Media liability covers the cost of litigating and compensating for online defamation and infringement of those property rights.
• Cyber extortion liability: This coverage responds in event of cyber extortion incurred by a third-party following the release of their private information.
• Errors and omissions liability: When the insured makes poor technological decisions that result in damages to their clients, cyber errors and omissions coverage steps in. 

Overall, third-party coverages protect businesses from legal liability to third parties resulting from a cyber incident. Because cyber insurance is not standardized, specific coverages vary depending on the insurer and policy. It would be wise to employ the services of a knowledgeable insurance professional to carefully review their options to ensure they have adequate protection.