The basics

What is cyber liability insurance?

Cyber liability insurance is designed to cover a business in the event of a cyber threat in which customers’ personal information is stolen or exposed.

Who needs cyber liability insurance?

Anyone who uses technology to do business should consider cyber liability insurance – not just big corporations.

In fact, hackers are statistically more likely to go after smaller organizations, as they often do not have the sophisticated security that many big companies do.

If your business handles sensitive customer data, even something as basic as credit card information, you should consider cyber liability insurance.

Why should I have cyber liability insurance?

In the event that something happens, cyber liability insurance will not only help protect your assets, but it will also help protect your reputation.

Cyber liability insurance will help pay for the response to a cyber attack as well as crisis management, reputation management, credit monitoring, and the cost to contact customers regarding a data breach (which is legally mandatory and surprisingly expensive at the same time). A situation like this could end up costing hundreds of thousands of dollars before you know it.

That’s what makes getting insurance coverage so appealing.

Cyber insurance highlights

Customer notification
This is mandatory by law in most places, and can be very expensive considering the cost of mailing and materials.
Forensics investigation
This is an investigation, in unison with law enforcement, to determine what occurred, how to remedy the situation, and how to prevent it from happening again.
Identity theft
The only thing worse than having your client’s identity stolen is having someone with that stolen identity commit fraudulent acts. Cyber liability helps clean up the mess.
Credit monitoring
You will need to monitor customers whose information may have been breached.
Reputation management
The cost of public relations and crisis management.
Third-party services and/or equipment for business interruption
Fixing situations like this requires a lot of time, and it’s often a complicated task to attempt on your own. Hiring third-party help can be costly, and still require a lot of attention. This coverage makes sure you have enough financial padding should you have to take time off work to remedy a situation.
Cyber extortion
This refers to losses due to a threat of extortion, or the cost of dealing with extortion.
Regulatory fines and legal costs
Legal fees, consulting fees, administrative fees, oh my! Add forensic costs, regulatory penalties, and data restoration costs to that and it’ll be enough to make you want to crawl under a rock.

Price factors

How much does cyber liability insurance cost?

Pricing varies based on your type of business, what types of information you gather, how many transactions take place, how many devices are involved, and your zip code.

To provide scope, a small business might pay an average of $42/month for cyber insurance, which amounts to around $500/year. However, depending on the limits of liability you select, this price could vary.

From there, insurance premiums can increase depending on the size and risk of your business.

Get an online cyber liability insurance quote to find out more.