Cyber Liability Insurance

Cyber liability insurance helps cover your business from cyber-attacks.

Protect your business against the costs of data breaches with cyber liability insurance.

Cyber liability insurance covers the risk of getting hacked.

Getting hacked isn’t just a hassle. It also poses a potentially huge and unexpected cost to your business. Cyber liability insurance is a specialized policy that helps cover many of the risks your business faces from an information breach—and may even cover some risks you might not have thought of.

What does a cyber liability policy cover?

A cyber liability insurance policy may help you to cover the expenses associated with a cyber-attack. Additionally, some commercial cyber liability policies may cover loss of business while your systems are compromised or unavailable. You may even be able to get coverage against inadvertently breaching somebody else's copyright.

What happens in the aftermath of a cyber-attack?

What happens during cyber-attacks matters, but the consequences after that are what really make an impact on your business, as well as your customers. What your business does in reaction to the data breach may lead to a hefty, unexpected cost for your business. Not to mention dealing with the aftermath of a cyber-attack could close your business temporarily, which could result in a loss of income. A number of action steps must be taken once your business has experienced a cyber-attack and breach of data. These steps include:

  • Notifying customers and clients of the data breach.
  • Restoring your business’s website to working order.
  • Dealing with extortion attempts.
  • Paying damages to clients, customers, and suppliers.

Proactively identifies weak points in cyber security.

In addition to protecting your business against cyber risks financially, obtaining cyber liability insurance may also help reduce potential risks. Insurers may walk through your current cyber-defenses and identify potential weaknesses that you need to fill in. By bolstering your cyber security, you may be able to help prevent data breaches from happening in the first place.

Need cyber liability insurance for your business? Contact us to go over your business needs and coverage options.

Frequently Asked Questions (FAQ) - Cyber Liability Insurance

What is Cyber Liability Insurance?

Cyber Liability Insurance, also known as cyber insurance, is a type of coverage that protects businesses from threats in the digital age such as data breaches, network failures, or any type of cyber-attack. It can cover legal fees, notifying customers, restoring personal identities of affected customers, recovering compromised data, and repairing damaged systems.

Who needs Cyber Liability Insurance?

Any business that uses electronic data, especially those that hold sensitive client information, needs Cyber Liability Insurance. This includes businesses of all sizes, from small startups to large corporations.

What types of risks are covered under Cyber Liability Insurance?

Cyber Liability Insurance covers various risks including data breaches, business interruption, network damage, cyber extortion, digital asset damage, and reputational harm.

Is Cyber Liability Insurance required by law?

While not generally required by law, certain industries with sensitive data may have regulations that require some form of cyber insurance. Even if it's not required, it's highly recommended for businesses in today's digital landscape.

How much does Cyber Liability Insurance cost?

The cost of Cyber Liability Insurance varies based on several factors, including the type of business, the amount of sensitive data, the company's annual revenue, and the company's cybersecurity practices.

How does Cyber Liability Insurance protect my business?

Cyber Liability Insurance protects your business by providing financial support in the event of a cyber-incident. It can cover costs related to data recovery, customer notification, legal fees, regulatory fines, public relations efforts, and even ransom payments in some cases.

What is the process to file a claim under Cyber Liability Insurance?

To file a claim, you'll typically need to notify your insurer immediately after discovering a cyber incident. You may need to provide details about the incident, including how it occurred, the effect on your business, and any steps you've taken to mitigate the damage.

Can I include Cyber Liability Insurance in my existing business insurance policy?

In some cases, yes. Some insurers offer it as an add-on to a business owner's policy (BOP). However, standalone policies usually provide more comprehensive coverage.

What types of businesses are most at risk for needing Cyber Liability Insurance?

While all businesses that use digital systems are at risk, those that handle sensitive data like healthcare providers, financial services, retailers, and service providers are typically at a higher risk.

How is the cost of Cyber Liability Insurance determined?

The cost is determined by several factors including the type of business, the size of the business, the amount and type of sensitive data stored, the company's annual revenue, the company's cybersecurity practices, and the chosen policy limits and deductibles.

What is not covered under a Cyber Liability Insurance policy?

Typically, physical damage to assets, bodily injuries, and intentional acts are not covered. Each policy is different, so it's important to read the terms carefully.

Does Cyber Liability Insurance cover ransomware attacks?

Yes, most Cyber Liability Insurance policies cover ransomware attacks. This can include the cost of the ransom, as well as costs associated with managing the incident, such as forensic investigations, legal advice, and notifying affected customers.

How can I reduce my risk and potentially lower my Cyber Liability Insurance premiums?

Implementing robust cybersecurity practices can reduce your risk and potentially lower your premiums. This can include regular risk assessments, employee training, installing reliable security software, regularly updating and patching systems, and having a response plan for cyber incidents.

What should I look for in a Cyber Liability Insurance policy?

When looking for a policy, consider the specific risks associated with your business. Look for a policy that covers both first-party (your business) and third-party (customers, partners) costs. Also, ensure the policy covers legal and public relations costs, which can be significant in the event of a breach.

How quickly can I get coverage after applying for Cyber Liability Insurance?

The timeline can vary depending on the insurer and the complexity of your business. However, in many cases, businesses can receive a quote within 24-48 hours and coverage can begin immediately after the policy is purchased and the premium is paid.

Why we're different

While most insurance products are similar in price and function, insurance providers vary when it comes to structuring a policy tailored to you.

After all, there’s no such thing as a one-size-fits-all insurance policy when it comes to your business.

Contact us today, and we'll help you protect what matters most.