FGIB:Offering Third-Party Cyber Insurance for Comprehensive Coverage

Data breaches are now a consistent cost of doing business in the cyber crime era, with organizations, particularly in the highly regulated financial industry sector, taking the necessary steps to incorporate data-protection strategies. In fact, along with the healthcare industry, those in the financial industry have the most costly data breaches because of fines and the higher-than-average rate of lost business and customers.

To transfer the risk involved with cyber crime, Financial Guaranty Insurance Brokers (FGIB) offers tailored and comprehensive Cyber Liability policies to community banks, commercial lenders, and Financial Technology (FinTech). We also can provide other businesses with Cyber insurance, as well. Our 30-plus years of insurance experience puts us in the position to properly protect you from what is now the new normal in cyber threats. Our Cyber policies are designed to provide coverage for both first- and third-party losses.

Third-Party Cyber Liability Coverage

Common third-party costs include:

  • Legal defense in the event of a lawsuit
  • Settlements, damages and judgments related to the breach
  • Liability to banks for re-issuing credit cards
  • Cost of responding to regulatory inquiries
  • Regulatory fines and penalties (including Payment Card Industry fines)

As policies vary from one insurance company to the next, it’s important to work with a broker familiar with the industry and what is available in the market. For example, Cyber policies may contain a sublimit that applies regulatory fines and penalties. We will review in detail the breadth of coverage available, coverage triggers, liability limits, exclusions, cyber security requirements and more with you, and secure a policy that fits your risk profile.