What is Cyber Liability Insurance?

When you’re starting up a business, the last thing you need is a big insurance bill. However, it’s important that you have adequate coverage for all of your business assets and liabilities. Commercial insurance policies can cover many different types of losses, including property damage and employee injuries resulting from accidents like slip-and-fall incidents or car accidents. And while it’s true that some commercial policies do include cyber liability coverage, there are also separate policies available if your business needs them.

The first question that comes to mind when thinking about cyber liability insurance is probably, “What is cyber liability insurance?”

Let’s start with what it isn’t. Cyber liability insurance protects your company against the financial consequences of a data breach or other cyber-related event, such as:

  • Identity theft and fraud
  • Loss of customers or contracts
  • Regulatory fines and penalties

It doesn’t cover lost equipment or software (like laptops) or employee injuries sustained while trying to stop a hack. What it does do is protect you against the direct costs of recovering from a security incident, including legal fees and settlements paid out in response to class action lawsuits filed by customers affected by the breach. In other words, if someone steals your customers’ credit card information after hacking into one of your servers, cyber liability coverage will reimburse you for any losses incurred from processing fraudulent charges.

Commercial insurance is a vital part of any business. Cyber liability insurance is one example of how you can protect yourself from risks that can affect your business. If you’re interested in learning more about this type of insurance, contact us today!

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