Cyber Insurance policies generally include both first-party and third-party coverage, but each protects your business in different ways.
First-party cover responds to the direct impact of a cyber incident on your business. This can include:
- Costs to investigate and contain the breach
- Restoration of lost or damaged data and systems
- Business interruption losses due to downtime
- Crisis management and public relations support
- Expenses for customer notifications and credit monitoring
This part of the policy helps your business recover quickly and minimise the operational and financial disruption caused by the incident.
Third-party cover applies when another party, such as a client, supplier, or regulator, holds your business responsible for the incident. This can include:
- Legal defence costs if a claim is made against you
- Settlements or damages awarded to affected third parties
- Regulatory penalties, where legally permitted
- Breach of privacy claims or failure to meet data protection obligations
Third-party cover is essential if your business stores sensitive information or provides services that could expose clients to cyber risks.
Understanding the difference between these two components is important when reviewing your policy, as not all insurers offer the same level of protection under each.
Contact us to review your current cover and ensure you have both first-party and third-party protection in place.
