Why Third-Party Cyber Incident Coverage is a Business Necessity

Entrepreneurs and long-standing members of the Croton Falls, NY, business community face increasing threats from relentless hackers. While proactive industry leaders are adding cyber insurance riders to their commercial policies, some may fall short of comprehensive coverage. At Carminucci Agency, we encourage decision-makers to consider third-party cyber insurance for added protection.

What is Third-Party Cyber Coverage?

Third-party commercial cyber insurance goes beyond covering direct losses. While some policies cover damaged computers, equipment, laptops, and handheld devices, others extend to drained bank accounts, business disruptions, and other tangible losses. Third-party cyber insurance, however, focuses on the losses suffered by vendors, clients, customers, and others impacted by a cyberattack on your business.

Cybercriminals may use your network to launch attacks on others in your orbit, making third-party coverage essential. Here’s what this type of insurance typically covers:

• Attorney Fees: Covers legal costs to litigate and resolve civil lawsuits brought against your business for failing to secure sensitive data.
• Fines and Penalties: Regulatory bodies may impose fines for inadvertently exposing personal identification information.
• Settlements: Helps cover the cost of settling cyber-attack lawsuits, allowing you to reach agreements without draining company resources.
• Judgments: Covers the cost of going to trial and paying jury awards, which can be financially devastating without proper coverage.

Statistics show that upwards of 75 percent of small businesses have experienced at least one cyberattack in the last 12 months, and 59 percent of all companies have been targeted with ransomware. These numbers highlight the importance of robust cyber insurance coverage.

Third-Party Commercial Cyber Insurance in Croton Falls, NY

At Carminucci Agency, we work closely with businesses in Croton Falls, NY, to ensure they have comprehensive commercial insurance to protect against cyberattacks. If you’d like more information or need assistance updating your policy, contact us today.