Cyber Liability Insurance

Cyber Liability is a type of insurance policy that protects businesses from risks associated with the use of computers and technology. Cyber liability risks for businesses can include:

• Malware
• Phishing attacks
• Ransomware
• Data breaches
• A stolen laptop containing confidential information

What does cyber liability insurance cover?

Cyber Liability coverage protects your small business from claims that arise from day-to-day business operations such as:

• Lost revenue and costs incurred from a breach or extortion threat
• Lost revenue due to a phishing attack
• Costs incurred to defend yourself against privacy lawsuits and regulatory fines
• Breach response resources if a cyber incident occurs

Cyber insurance covers a variety of small business risks that are divided into two parts:

First-party coverage – Covers damages that you and your business suffer because of a data breach. This can include things like investigative services, business interruption coverage and data recovery.

Third-party coverage – Covers damages if your customers or partners are affected by a cyber-attack on your business. This can include legal fees, settlement costs, security failure and media liabilities.

Who needs a cyber insurance policy?

Any business that stores or processes sensitive information like names, addresses, Social Security numbers, medical records or credit card information needs cyber insurance.

Also, any third-party who handles your confidential data and information, such as an accountant or IT service, should have their own cyber insurance policy. Be sure to get proof of coverage before hiring them.

Common questions

Does cyber insurance provide coverage for data breach lawsuits and legal fees?

Yes. Your cyber insurance policy covers things such as legal fees and settlement costs - up to the policy limit - in the event of a data breach.

Cyber insurance does not cover losses indirectly caused by a data breach or cyber-attack. So, a loss of intellectual property or damage to your brand caused by a data breach wouldn’t be covered.

Yes. You select the amount of your deductible. A deductible is the fixed out-of-pocket expense you agree to pay before your coverage starts to pay. The deductible applies each time a loss is covered under your cyber policy.