Cyber Liability Insurance
What Cyber Liability Insurance Does
Cyber Liability Insurance covers a business’ liability for a data breach in which your customers’ personal information is exposed or stolen by a hacker or other criminal who has gained access to your network.
It provides coverage for first and third party liability as well as expenses associated with a data breach such as:
- Notification costs
- Credit monitoring
- Costs to defend claims by state regulators
- Fines and penalties
- Loss resulting from identity theft
A cyber policy could also cover property losses such as:
- Business interruption
- Data loss/destruction
- Computer fraud
- Funds transfer loss
- Cyber extortion
Why It Is Important
Traditional insurance policies have significant gaps in coverage and exclusions for cyber exposures. However, 1 in 5 small businesses are affected by a cyber crime each year. The costs associated with a cyber attack are so great that 60% of businesses who have experienced an attack will close within 6 months due to the expense.
Who Needs Cyber Liability Insurance
Almost all businesses have a cyber exposure. If you store any personal identifiable information for your clients, if you advertise via the internet, if you pay invoices online…you are at risk for a data breach.
