What is a Cyber ​​Liability Insurance cover?

Unfortunately, data breaches and other cybercrimes are becoming all too common. In the past two years, data breaches have led to significant fines and legal fees, not to mention headaches, for a discount retailer, one of the nation’s largest banks, a well-known health insurer, an entertainment network, and the federal government. But it’s not just large organizations that are susceptible to being hacked or catching a virus. Did you know that 55% of small businesses have experienced a data breach and 53% have had multiple breaches? A data breach can damage more than just your small business’ computer system; it can also damage your reputation and put your customers and/or employees at risk.

What is cyber insurance?

Cyber ​​insurance typically covers your company’s liability for a data breach involving sensitive customer information, such as social security numbers, credit card numbers, account numbers, driver’s license numbers, and medical records.

Will my general liability policy not cover cyber liability?

General liability insurance covers bodily injury and property damage resulting from your products, services, or operations. Cyber ​​insurance is often excluded from a general liability policy.

What does cyber insurance cover?

In addition to legal fees and expenses, cyber insurance generally helps with:

• Notify customers of a data breach
• Restoring the personal identities of affected customers
• Recover compromised data
• Repair of damaged computer systems

Most states require companies to notify customers of a data breach involving personally identifiable information, a process that can be very expensive. And while most states don’t require companies to offer free credit monitoring after a breach, this gesture is a boon for public relations.