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Many of our clients bundle multiple insurance policies for convenience, discounts, and broader protection. Explore these other personal insurance options.
Cyber insurance is an insurance product designed to help businesses hedge against the potentially devastating effects of cybercrimes such as malware, ransomware, distributed denial-of-service (DDoS) attacks, or any other method used to compromise a network and sensitive data. Also referred to as cyber risk insurance or cybersecurity insurance, these products are personalized to help a company mitigate specific risks.
Cyber liability insurance helps protect businesses from the financial consequences of cyberattacks, data breaches, ransomware, phishing scams, and other technology-related incidents. A cyber insurance policy can help cover the costs of recovering from a cyber event, including legal expenses, customer notification, data restoration, forensic investigations, and business interruption.
As cyber threats continue to evolve, businesses of every size are becoming targets. Cyber liability insurance has become an important part of a comprehensive business insurance program.
Any business that stores customer information, processes electronic payments, uses email, relies on computer systems, or maintains confidential business records should consider cyber liability insurance. Small businesses, medical offices, retailers, contractors, manufacturers, nonprofit organizations, financial professionals, and professional service firms all face cyber risks.
Even businesses with only a few employees can suffer significant financial losses following a cyberattack.
Coverage varies by insurance company, but many cyber liability policies include protection for data breaches, ransomware attacks, cyber extortion, business interruption, data recovery, forensic investigations, legal defense costs, regulatory proceedings, customer notification expenses, credit monitoring services, and public relations efforts following a covered cyber event.
Many policies also provide access to cybersecurity experts who can help businesses respond quickly after an attack.
In most cases, no. General liability insurance is designed to protect against bodily injury, property damage, and certain advertising-related claims. It generally does not cover data breaches, ransomware attacks, cyber extortion, or other cyber-related losses.
Businesses that rely on technology should consider a dedicated cyber liability insurance policy to address these specialized risks.
Ransomware is a type of malicious software that encrypts a business's files or computer systems until a ransom payment is demanded. Many cyber liability insurance policies provide coverage for ransomware-related expenses, including forensic investigations, data restoration, business interruption, and, when permitted by law and policy terms, cyber extortion payments.
Having both strong cybersecurity practices and cyber insurance can help businesses recover more quickly from these increasingly common attacks.
The cost of cyber liability insurance depends on several factors, including your industry, annual revenue, number of employees, types of information you store, cybersecurity controls, claims history, and the coverage limits you choose.
Businesses with strong cybersecurity measures such as multi-factor authentication, employee training, and secure data backup systems may qualify for more favorable insurance premiums.
Businesses of every size are targeted by cybercriminals, but small and mid-sized businesses are often attractive because they may have fewer cybersecurity resources. Medical practices, law firms, retailers, financial services companies, manufacturers, contractors, nonprofits, schools, and professional service firms commonly experience phishing attacks, ransomware, wire fraud, and data breaches.
No business is too small to become the victim of a cyberattack.
Many cyber liability policies provide coverage for incidents resulting from unintentional employee errors, such as clicking on phishing emails, sending sensitive information to the wrong recipient, or accidentally exposing confidential data. Coverage depends on the policy and the circumstances surrounding the event.
Regular cybersecurity awareness training can help reduce the likelihood of employee-related cyber incidents.
Businesses can improve their cybersecurity by using strong passwords, enabling multi-factor authentication, maintaining regular software updates, backing up critical data, training employees to recognize phishing scams, restricting system access, and developing an incident response plan.
Cyber liability insurance complements these security measures by helping businesses recover financially if a cyber incident still occurs.
You should review your cyber liability insurance at least once each year and whenever your business undergoes significant changes. Expanding operations, adding employees, launching e-commerce, collecting additional customer information, implementing new technology, or increasing revenue may all affect your cyber risk.
An annual policy review helps ensure your coverage keeps pace with your business while protecting against today's rapidly evolving cyber threats.
