As cyber threats evolve, protecting your business from digital risks is more important than ever. Navigating cyber insurance can be complex, especially when it comes to understanding the difference between first-party and third-party coverage.
First-party Cyber Coverage: Protecting Your Business 
First-party cyber coverage focuses on the direct losses your business may experience after a cyber event. This type of insurance can help with:
- Costs to restore or recover lost data
- Expenses related to notifying affected customers
- Business interruption losses due to system downtime
- Cyber extortion payments (such as ransomware)
- Crisis management and public relations support
Essentially, first-party coverage is about helping your business recover quickly and minimize disruption after a cyber incident.
Third-party Cyber Coverage: Protecting Against Liability
Third-party cyber coverage, also known as cyber liability insurance, addresses claims made against your business by others affected by a cyber event. This may include:
- Legal defense costs if a client or partner sues your business
- Settlements or judgments related to privacy violations
- Regulatory fines and penalties (where insurable)
- Costs associated with investigations or lawsuits
Third-party coverage is especially important if your business handles sensitive customer data or provides technology services to others.
Choosing the Right Protection for Your Business
Every business faces unique cyber risks. Our team at Churchill Insurance works closely with California business owners to assess their exposures and recommend tailored cyber liability insurance solutions. Whether you need robust first-party protection, third-party coverage, or a combination of both, we’re here to help.
Contact us today to discuss your options with our experienced team.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.