Cyber Liability Insurance
What is cyber liability insurance?
Cyber liability insurance is designed to cover costs associated with lawsuits related to customer data, including issues such as data breaches, cyber extortion, and network failures. Increasingly, both technology and non-technology companies are facing these types of risks and losses.
Do I need it?
If your business stores or hosts customer data—such as Social Security numbers, addresses, or credit card information—you have a regulatory obligation to keep that data secure. In such cases, cyber liability insurance is often essential to protect against potential risks and liabilities.
What does it cover?
Cyber liability insurance provides coverage for both first-party and third-party liabilities. This includes:
First-party coverage: Protection if your own systems are breached or attacked.
Third-party coverage: Protection if a client’s system, for which you are the host, is breached or attacked.
This comprehensive coverage helps mitigate the financial impact of cyber incidents.
What does it cost?
The cost of cyber liability insurance varies based on factors such as:
The size and type of your business
The amount of coverage needed
The industry you operate in
Your claims history and security measures in place
It’s best to consult with an insurance broker to obtain quotes tailored to your specific needs.