Help Protect Your Business From Digital Threats
Cyber Liability Insurance
Cyberattacks Are Becoming More and More Common
Cyber Liability Insurance helps protect businesses against financial losses caused by data breaches and theft, system hacking, ransomware extortion payments and more. It covers expenses such as customer notification, credit monitoring, legal fees, and fines.
A cyberattack isn’t just an inconvenience – it can put you out of business. In fact, 60% of small businesses go under within six months of a cyberattack.
First-Party Cyber Liability Coverage
Sometimes called data breach insurance, first-party covers costs related to a data breach or cyberattack that directly impacts your business. This coverage can often be added to your general liability insurance and covers:
Breach Response Costs
Helps cover costs associated with investigating the breach, customer notifications, and Payment Card Industry (PCI) compliance fines
Business Interruption
When normal operations need to be halted to handle a cyber incident response, cyber liability insurance can help cover expenses
Cyber Ransom
If a hacker steals information about your company or its employees, cyber liability insurance will help with payments to meet cyber extortion demands
Third-Party Cyber Liability Coverage
Third-party coverage offers liability protection and helps cover the costs of a lawsuit if a client sues your company for failing to prevent a breach or cyberattack. This coverage is typically for tech companies that make software recommendations to clients or are responsible for their network security.
Legal Defense Costs
If a client sues your business for failing to prevent a data breach, attorney fees and other legal costs for your defense
Settlements
If you and the client decide to settle out of court with a cash settlement, this coverage will help with the payout
Judgments
If the court finds you are legally obligated to pay for damages from any judgments in a lawsuit
Cyber Liability Insurance FAQ
We strongly encourage all our clients to consider the value of cyber insurance, especially if you use online systems or store sensitive personal client data like social security and credit card information. Cyberattacks cost small and medium-sized businesses an average of $2.2 million.
Cyber Liability Insurance provides businesses with a combination of coverage options to help protect the company from data breaches and other cyber security issues.
In addition to legal fees and expenses, cyber insurance typically helps with:
- Notifying customers about a data breach
- Restoring personal identities of affected customers
- Recovering compromised data
- Repairing damaged computer systems
The cost of a cyber insurance policy will depend on the type of business you run and the level of cyber risks you are exposed to:
- Company size and industry
- Amount and sensitivity of your data
- Strength of your data security measures
- Desired amount of coverage
Phishing and email scams are very common, as many thieves prey on employees by pretending to be a supervisor requesting information.
Cyber Liability Insurance protects you in the event of a malware and phishing (and other network breaches) attack even if it has been caused by an employee.
64% of small businesses report a data breach each year, and that number continues to grow as cyberattacks increase in sophistication and severity. It takes companies without a dedicated IT team an average of 200 days to learn they have fallen victim to a cyberattack.
