Cyber Liability Insurance
What Is Cyber Liability Insurance?
Cyber liability insurance financially protects your business if you experience a cybersecurity-related incident. It’s coverage for the digital side of your business and helps you recover if your customers are negatively impacted by cybercrime.
Running a business often means storing or processing sensitive information, like customer credit card details or email addresses, digitally — which means there’s always risk of hackers attempting to steal that data!
Cyber liability insurance is an essential safety net for what your business does online.
What Does Cyber Liability Insurance Cover?
Cyber liability insurance typically covers costs to help you take care of a cyberattack, as well as your financial responsibility to make things right with affected third parties (other people).
It can cover costs for things like:
- Investigating the breach
- Cyber extortion payments
- Notifying affected customers
- Paying for credit monitoring
- Managing your public relations
- Legal defense or damages awarded
For more information about who needs cyber liability coverage and how much it costs, check out our Cyber Liability Insurance guide.
How Do I Know If I Need Cyber Insurance?
No matter how big or small your business is, if you store client information or accept payments online, you need cyber liability coverage. Using the internet or relying on technology puts you at risk of cyberattacks — cyber insurance is your safety net in case of a digital disaster.
Is Cyber Liability the Same as Data Breach Insurance?
Data breach insurance is a narrower coverage that falls under cyber liability insurance, which covers a wider range of digital risks — not just data breaches.
However, these names are often used interchangeably in the insurance world because, for most people, the first thing that comes to mind when thinking about cyber risk is a data breach. Framing it this way helps highlight how these coverages can help you recover from tech-related exposures, from data breaches and beyond.
What Is Cyber Liability Coverage vs General Liability Insurance?
| Cyber Liability Insurance | General Liability Insurance | |
|---|---|---|
Main Purpose |
Protects your business from losses caused by data breaches, cyberattacks, or other online threats |
Protects your business from third-party bodily injury, property damage, and advertising/personal injury claims |
Typical Coverage | – Data breach response (legal fees, customer notification, credit monitoring) | – Slip-and-fall accidents |
Who Needs It |
Any business of any size that handles sensitive customer data or operates online |
Every small business |
Why It Matters |
A single cyber incident can be financially devastating, even for small businesses |
A single claim could cost thousands, plus it’s often required for contracts, gigs, and events |
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