Cyber insurance is a growing segment of the insurance market. It helps companies avoid incurring huge losses from database security breaches. With so much money and personal information exchanged through and stored on the internet every day, cyber crime cannot be ignored. Many organized criminal groups consider small businesses especially easy targets with low risk and high payoffs.
Cyber insurance can include first-party and third-party coverage. The first-party coverage mitigates the expenses your company incurs, which can include legal fees, system repairs, lost income, and public relations. Third-party coverage involves claims against your company from outside parties, such as your clients who were affected by the breach.