First-Party Cyber and Data Risks Insurance (FPC)

First-Party Cyber and Data Risks Insurance (FPC) covers the policyholder against the financial consequences of a hacker attack, a DoS attack, computer abuse, the spying of data or any other act of internet crime (cyber crime) by unauthorised third parties and bears the costs incurred.

As insurance solutions for this type of damage have not been on the market for a long time, there is currently no agreed-upon name. Similar offers can therefore be found, for example, under the names hacker insurance, data risk or data protection, cyber liability or data security insurance.

In contrast to conventional general liability insurance, First-Party Cyber and Data Risks Insurance (FPC) coverage not only takes effect in the event of claims for damages by third parties (e.g. a client incurs damage from a cyber attack), but also applies in the event of damage incurred by the policyholder themselves (=first-party claim). For example:

• Hacker damage to your own IT systems
• First-party data rights claim (in particular spying on personal data)
• Expenses for an (imminent) interruption in business (additional cost coverage)
• Costs for criminal defence (internet criminal legal protection)

With the increasing importance of the Internet in all areas of business, there is also increased risk that sensitive data may be stolen or destroyed by a hacker attack and that high sales losses could threaten your business.

First-Party Cyber and Data Risks Insurance (FPC) therefore not only compensates for the direct damage caused by the attack, but also covers all additional costs associated with restoring business capability in order to avoid an interruption in business. For example, if third-party IT and computer systems have to be rented for this.

In addition, First-Party Cyber and Data Risks Insurance (FPC) also covers the costs for any necessary crisis management:

• Hiring external computer forensics analysts, specialised lawyers and consultants to provide information to data owners
• Hiring credit protection and monitoring services as well as PR and crisis communication professionals.