Commercial cyberinsurance isn’t required by state or federal law, but it’s a vital policy that every Mapleton, UT, business owner should seriously consider. Recent statistics show that Utah is one of the top fifteen states with the highest reported rate of corporate cybercrime. What’s more, trends show that hackers don’t just target large corporations. Small business owners are especially vulnerable, and even a single attack can permanently shut down a business that doesn’t have proper coverage.

First-Party vs. Third-Party Cyberinsurance

There are two types of commercial cyberinsurance for a business. Both are important, as each policy type offers vital coverage in the event of a hack.

First-Party Cyberinsurance

First-party cyberinsurance, as the name implies, covers your business. It provides compensation to cover a ransom demand. It covers the cost of repairing your IT system and even having it evaluated for vulnerabilities that could lead to future breaches. It also covers the cost of notifying your clients about the breach.

Third-Party Cyberinsurance

Third-party cyberinsurance covers legal fees that arise as a result of a breach. Such fees include fines for failure to protect sensitive personal data, settlements, and court judgments against your business. It also covers the cost of hiring a lawyer to defend your company.

Find Out More from Maple Mountain Insurance Services

Does your business need one or both forms of cyberinsurance coverage? Do you handle a large quantity of sensitive data and want to look into specialized umbrella cyberinsurance to accompany first party, third party, or both types of cyberinsurance? If so, give our team at Maple Mountain Insurance Services a call. We’re always happy to help Mapleton, UT, business owners get optimal coverage.