Cyber Liability

Cyber Liability Insurance


Cyber liability coverage is insurance coverage for liability that arises out of unauthorized use of, or unauthorized access to, electronic data or software within your network or business. Cyber liability policies also provide coverage for liability claims for spreading a virus or malicious code, computer theft, extortion, or any unintentional act, mistake, error, or omission made by your employees while performing their job.

The typical business insurance policy only covers so-called “tangible” assets and electronic data is not considered tangible under the typical policy definition. Cyber liability insurance fills that gap. As the number of risks has increased and as the networked world becomes more complex, so have cyber liability policies.

Most policies today can be built around the needs of the business. An online retailer will have different needs than a brick and mortar small business with a limited web presence. Obviously, the size of the business, the number of customers, the type of data (financial records vs. medical records, for example), and other factors will affect the cost of the premium. As always, you will want to review policies from several insurers and work with your insurance professional to create a cyber liability policy that works for your business.

The insurance can cover business interruption from a network attack and even the cost of responding to customers and insuring regulatory compliance in case of a breach (imagine that the recent data breach at Sony affected 20 million customers and you can see the potential costs involved in responding to such a breach can be staggering).

To find out more information or get a quote, please call (800)735-4850 or email us at