Cyber Insurance

Getting the appropriate coverage with our Cyber Insurance
can protect your business — and help you recover!

Cyber Insurance for Business

The cost of dealing with a data breach goes beyond repairing databases, strengthening security procedures or replacing lost laptops. Regulations requiring notifications to affected customers also drive up costs for companies when a data breach compromises personal or confidential data. Traditional business insurance may not be enough to protect companies from cyber crime.

Unfortunately, cybersecurity threats are increasingly common. As a small business owner that interacts with customers and/or takes electronic payments, you’re at risk of a data breach, and the consequences can be steep.

According to a recent study, 41% of small businesses that suffered a data breach paid more than $50,000 to recover. Worse, nearly 30% of customers said they would never go back to small businesses affected by a data breach, demonstrating how a single incident can cost you future business.1 Getting the appropriate coverage can protect your business—and help you recover.

What is Cyber Insurance?

Almost all small businesses communicate with vendors and customers electronically now. You likely use email, accept electronic payments, and store customer information. If so, you are at risk of getting hacked or being impacted by a virus. If that happens, your computer system could be affected, but your customers and employees could be at risk, too.

General liability insurance typically only covers bodily injuries and property damage resulting from your products or services; damages from cyberattacks are usually excluded. If you don’t have cyber insurance, you could be on the hook for the expenses yourself.

A cyber insurance policy can covers the following:

Legal services to meet state and federal regulations
Notification expenses to alert customers that their information was compromised
Lost income from network outages
Lawsuits related to employee or customer privacy
Regulatory fines from state or federal agencies
Call center services
Public relations and crisis management services
Initial breach investigation and consulting for legal and forensic services
Data security and privacy liability
Privacy breach response services
Website media content liability
Cyber extortion
First-party data protection
First-party network business interruption
Identity recovery
Misdirected payment fraud
Computer fraud
Telecommunications fraud
Cyber extortion
Network security liability
Electronic media liability

Some cyber liability insurance also includes coverage for website media content liability. As businesses build their presence online, this coverage addresses risks associated with plagiarism, piracy, trademark infringement, libel, or slander related to your website content.

If your business is the victim of a data breach, how you must report the incident is dependent on your industry and state and federal regulations. For example, healthcare professionals are regulated by the Health Insurance Portability and Accountability Act, which includes extensive guidance on cyber security and breach reporting.

Most insurers will require you to have antivirus and firewall software in place before they will cover you, before they will cover you.

What is not covered by Cyber Insurance?

Like all insurance policies, there are exclusions to cyber insurance coverage. Cyber insurance policies typically do not cover potential future lost profits, loss of value due to theft of your intellectual property, and the cost of improving or upgrading your systems or security after a data breach.

How much Cyber Insurance do I need?

Cyber insurance usually has limits ranging from $100,000 to $5 million per occurrence. Every business is different and their limits can vary as needed. If you have a larger business or have a higher level of risk—such as a company that faces a potential lawsuit, handles a large amount of credit card transactions, or stores sensitive information—you may want a higher limit.

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