Cyber liability insurance protects your small business from the high costs of a data breach or malicious software attack. It covers expenses such as customer notification, credit monitoring, legal fees, fines and other costly expenses.
Do you need cyber liability insurance?
Cyberattacks and data breaches are expensive and increasingly common. Most small businesses don’t have large IT resources dedicated to cybersecurity, which puts them at risk.
If you handle customer data, accept credit card or EFT payments, or have other sensitive information relative to your customers’ lives, you need a cyber policy. Although all small businesses are at risk for cyberattacks, companies in retail, healthcare, financial services and home repair are frequent targets for hackers.
Most small business owners need this type of coverage because they handle one or more of the following types of data:
- Credit card or bank account information
- Medical information
- Social Security or driver license numbers
- Customer names, email addresses, phone numbers and addresses
There are two types of cyber liability insurance. First party coverage protects you when your technology or systems are breached and / or your data is stolen. Third party coverage protects you if a customer initiates legal action against you for failing to prevent a breach at your business.
Want to learn more? Contact our small business risk experts.