Your business may require cyber liability insurance if you:
- Accept credit card payments or other digital payment methods
- Rely on computers and mobile devices for daily operations
- Store sensitive medical or financial data
- Maintain personal customer information
For more details on cyber liability insurance, visit the small business insurance page or contact Hiscox at (800) 841-1621.
Cyber Liability Insurance Coverage Options
Operating in the digital age exposes businesses to various cyber risks. Understanding your cyber liability insurance options is vital to protect your assets and reputation. Here are the primary coverage types available:
- First-Party Coverage: This covers expenses related to responding to a cyber attack, such as data recovery, notifying affected customers, offering credit monitoring services, and covering losses due to business interruptions caused by a breach or system downtime.
- Third-Party Defense and Liability: If your business manages client data, this coverage protects you against legal claims from third parties. It covers legal fees, settlements, and any judgments stemming from data breaches or loss of sensitive information.
- Regulatory Fines and Penalties: As data protection regulations tighten, this coverage helps pay for any fines or penalties resulting from non-compliance with these laws.
By selecting the right combination of these coverages, you can protect your business from the financial and operational impacts of cyber incidents like data breaches, system hacks, or regulatory violations.
Why Do You Need Cyber Liability Insurance for Your Business?
In today’s digital world, the risk of cyber incidents, such as data breaches or cyber theft, is ever-present. Cyber liability insurance is essential, not optional, for modern businesses. It forms a critical part of risk management by providing financial protection from cyber threats that could disrupt operations, compromise data, and cause significant financial and reputational harm.
Cyber liability insurance helps manage various risks, including:
- Data Breaches: Covers costs related to breaches, such as customer notification, credit monitoring, and legal fees.
- Cyber Theft: Protects against losses from electronic theft of funds or data.
- Business Interruption: Compensates for income lost due to a cyber incident that halts operations.
- Ransomware: Covers ransom payments and recovery costs after a cyber extortion attack.
- Legal Fees and Settlements: Pays for costs from lawsuits resulting from failure to protect customer data or comply with privacy regulations.
Any business, regardless of size, that handles sensitive information or relies on digital systems should consider cyber liability insurance. This coverage ensures your business can respond swiftly to minimize downtime and maintain customer trust. Investing in cyber insurance is an investment in your business’s security and continuity.
Note: Specific exclusions may apply to your coverage. Contact one of our insurance specialists for more information.
What Does Cyber Liability Insurance Cover?
Cyber liability insurance can protect your business from claims related to everyday operations, such as:
- Expenses from a data breach or extortion threat
- Costs from a phishing attack or covered network outage
- Defense costs in privacy lawsuits (e.g., customer or employee data breaches)
- Fines from federal or state regulators
- Breach response, including forensic investigations
- Crisis management costs
- Business interruption
- Notification costs for alerting affected customers about compromised personal data
What Isn’t Covered by Cyber Liability Insurance?
It’s important to note that cyber liability insurance has limitations and exclusions. To ensure full protection, you may need additional types of business insurance. Here are some coverages that complement cyber liability insurance:
- General Liability Insurance: Covers claims for property damage or bodily injury caused by your business.
- Professional Liability Insurance: Protects against claims of errors or omissions in the professional services you provide.
- Employment Practices Liability Insurance: Covers employee claims related to harassment, discrimination, or wrongful termination.
- Commercial Property Insurance: Helps protect your business’s physical location and equipment, whether owned or rented.
- Business Owners Policy (BOP): Combines general liability and property coverage.
- Commercial Auto Insurance: Personal auto insurance policies are insufficient for vehicles used for business purposes.
How Much Does Cyber Liability Insurance Cost?
The cost of cyber liability insurance depends on the specific needs of your business. GEICO can assist in finding a policy that provides the right coverage at an affordable price. For a customized quote, contact our partner Hiscox at (800) 841-1621.