Cyber Insurance
Protection against data breaches, cyberattacks, and digital liability.
Typical cost: $1,000 – $7,500+ per year
What Is Cyber Liability Insurance?
Cyber liability insurance protects businesses from the financial fallout of data breaches, cyber attacks, and network security failures. With the average data breach costing small businesses $120,000-$200,000, cyber insurance has become essential for any business that stores customer data or relies on technology.
First-Party vs. Third-Party Coverage
First-party coverage pays your direct costs: forensic investigation, notification expenses, credit monitoring, data restoration, ransomware payments, and business interruption. Third-party coverage defends against lawsuits from affected customers, regulatory fines, and payment card industry penalties.
Who Needs It
Any business that stores customer data (names, emails, payment info), relies on computer systems, processes credit cards, or could be targeted by ransomware needs cyber coverage. Healthcare, retail, financial services, and professional services face the highest exposure.
What's covered
Data Breach Response
Covers forensic investigation, customer notification, and credit monitoring services.
Ransomware Coverage
Pays ransom demands and costs to restore systems after ransomware attacks.
Business Interruption
Covers lost income while systems are down due to cyber incidents.
Data Restoration
Pays to reconstruct or restore data damaged or destroyed by attacks.
Cyber Extortion
Covers ransom payments and negotiation costs for various extortion schemes.
Regulatory Defense
Pays fines, penalties, and defense costs for privacy regulation violations.
Third-Party Liability
Defends against lawsuits from customers and partners affected by your breach.
Specialized coverage
Explore specific cyber insurance options.
Small Business Cyber Insurance
Affordable cyber coverage for small businesses.
Enterprise Cyber Insurance
Comprehensive cyber protection for large organizations.
Healthcare Cyber Insurance
HIPAA-compliant cyber coverage for healthcare providers.
E-Commerce Cyber Insurance
Protection for online retailers and digital businesses.
Data Breach Insurance
Coverage specifically for data breach response and notification.
Pros and cons
Advantages
- Covers rapidly growing cyber risk that other policies exclude
- Provides expert breach response resources and vendors
- Ransomware coverage can save your business
- Regulatory defense as privacy laws proliferate
- Business interruption for system downtime
- Third-party coverage for customer lawsuits
Considerations
- New and evolving coverage with inconsistent policy forms
- Premiums increasing significantly due to ransomware claims
- Requires meeting security standards to qualify
- War exclusions may void coverage for nation-state attacks
- Coverage limits may be insufficient for major breaches
- Acts of employees may be excluded
Frequently asked questions
Related coverage
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Required coverage for employee work-related injuries and illnesses.
Vehicle coverage for business-owned cars, trucks, and fleets.
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