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Part 2: Cyber Insurance Third-Party Coverage
Jeff Ryan - CLU, ChFC, AIA, CIC, CPCU
March 27, 2023
Part 2 of a 3 Part Series
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.
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“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
OK. Admittedly, this strategy doesn't benefit everyone, but it can be very beneficial for those it does. You may have unique home or auto insurance needs that prevent you from bundling with the same company. Alternatively… you might have a better rate without the bundle discount by splitting up your insurance between multiple carriers.
