What Is Cyber Liability Insurance?

Cyber liability insurance is a type of insurance that provides coverage for businesses in the event of data breaches, cyberattacks, or other cyber-related risks. This insurance can help cover the costs associated with cyber incidents, including legal fees, public relations expenses, and financial losses.

Here are some examples of why a business may need cyber liability insurance:

• Data breaches: If a business experiences a data breach that exposes sensitive customer information, cyber liability insurance can help cover the cost of notifying customers, credit monitoring services, and other expenses associated with the breach.
• Cyber-attacks: If a business is the victim of a cyber-attack, such as a ransomware attack or denial of service attack, cyber liability insurance can help cover the cost of recovering data, restoring systems, and other associated costs.
• Website or social media liability: If a business is held liable for content on their website or social media accounts, cyber liability insurance can help cover the cost of legal fees and settlements.
• Business interruption: If a business is unable to operate due to a cyber incident, cyber liability insurance can help cover lost income and other expenses related to the interruption.
• Regulatory fines and penalties: If a business is found to be non-compliant with data protection regulations, such as the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA), cyber liability insurance can help cover the cost of fines and penalties.

Overall, cyber liability insurance is important for businesses of all sizes to protect themselves from financial losses due to cyber incidents. Without this insurance, a business may be at risk of significant financial losses due to cyberattacks, data breaches, or other cyber-related risks. Armour’s brokers can help you find the best coverage at the best price.