It’s not the most exciting topic, but cyber insurance can be a crucial aspect of keeping your business safe. In this post, we’ll explain what cyber liability insurance is, why it matters, who needs to have it, and what it covers. By the end of this article, you’ll know if you need cyber liability insurance coverage.

Why cyber liability insurance matters

You may be wondering why you need cyber insurance. You’re not likely to be hacked and your business is unlikely to experience a damaging cyber attack, right? To the contrary, research shows that cyber attacks are on the rise. Small businesses in particular face more threats today than ever before!

The truth is that cyber attacks are on the rise and have been for years now. Many businesses rely on sensitive data—including customer information or proprietary company information—to do business. It makes sense that they would want protection against data breaches and other issues related to cybersecurity.

Who needs cyber liability insurance?

If you collect personal information from your customers, such as their name, address, phone number and email address, then you probably need cyber liability insurance.

This includes businesses that have a website or online presence. If you have an online store or allow customers to make purchases through your website then this is also grounds for needing cyber liability insurance.

If your business uses email to communicate with customers (for example by sending newsletters or promotional offers), then this is also considered grounds for needing cyber liability protection.

Social media platforms like Facebook and Twitter can be tools for communicating with current and potential customers—and those who use social media in their jobs should consider having cyber liability insurance if they are regularly posting on these sites about their business.

Types of cyber protection

The first step to securing your network is having the right tools in place. A good security tool can help mitigate all sorts of threats, from viruses and malware to spam and ransomware attacks.

It’s important to remember that any technology used for cybersecurity has its limitations; no tool will ever be 100% effective against every possible attack or threat. That said, it’s also true that an imperfect tool is better than nothing at all.

What does cyber liability insurance cover?

Cyber liability insurance covers all the costs associated with a data breach. It covers the costs of investigation and notification, as well as recovery. It also covers legal fees that may be incurred by your business following an incident, credit monitoring for affected customers, credit restoration services (a service that helps you restore your customers’ credit scores following a data breach), and identity theft protection services.

What does cyber liability insurance not cover?

  • Cyber liability insurance does not cover losses that are not directly related to cyber attacks.

If your business suffers a loss because of a natural disaster or some other event that is not related to a cyber attack, you won’t be covered by the policy.

  • Cyber liability insurance does not cover losses that result from employee negligence.

Sometimes employees mistakenly deletes files or otherwise causes damage on purpose (intentionally or as part of their job). It’s important to understand that these kinds of losses often aren’t covered under your insurance plan.

Cyber liability insurance can help protect your business against a costly data breach.

Every business is at risk of a cyber attack. The question isn’t if your business will be attacked, but when.

Your company’s data may contain personal information such as social security numbers, credit card numbers or other sensitive personal data. The consequences of a data breach can be damaging to your brand image and put you at risk for significant financial losses. That’s why it’s important to have coverage in place before something happens so that you’re protected from the damage caused by a breach or attack on your network or website.


We know this topic might be confusing for some people. But we hope that this post has provided a good overview of cyber liability insurance and why it is essential to get protected. Whether you just have one employee or thousands, cyber insurance coverage costs less than a breach.

But cyber insurance it’s the end-all-be-all of protecting your business. Just like other types of insurance, it’s best to avoid filing a claim in the first place. While it will help protect your business from financial loss, going through a cyber attack is never fun. That’s why it’s important to put cybersecurity protections in place beforehand. This will help you protect your sensitive company information and keep your business up and running. Learn more about ways to proactively protect your business.