Cyber Liability Insurance

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Coverage for cyberattacks is a must-have for all businesses that store information digitally, such as payment details and other sensitive data. Shield your business from the cost of phishing scams, data theft, ransomware, and hackers with cyber liability insurance from Insurance Canopy!

Continue reading to learn more, or get covered today by selecting your industry below.

What Is Cyber Liability Insurance?

A cyber liability policy is a type of insurance coverage that protects your business against losses stemming from cyber-related incidents. These include common cyber crimes such as:

  • Data breaches
  • Malware
  • Cyber extortion (ransomware)
  • Phishing – and more

Is It Required By Law?

While not required by law, cyber liability insurance is highly recommended. As of 2023, cyberattacks occurred every 39 seconds. If you store customer data online, process payments over the internet, collect information from prospects or customers on your website, or transact other business activities online, you’re susceptible to bad actors.

While taking recommended security measures helps mitigate your risk, having a cyber liability policy is the best way to shield your finances if you fall victim to a cyberattack.

Who Needs Cyber Liability Insurance?

You need cyber liability insurance if your business stores any customer information, uses email, has an e-commerce site, or uses the internet in their business since this puts you at risk of a cyberattack.

Businesses of all sizes are targeted, but more than 40% of small businesses are hit with a cyberattack each year. In fact, small businesses are often targeted because they aren’t as likely to have the same resources to implement cyber security measures that larger companies do.

The cost to mitigate a cyber-related claim can be staggering, with the average ransomware loss exceeding $263,000 in 2023. That’s why cyber liability coverage is so important, and why many small businesses don’t reopen after being a victim of a cybercrime.

If your business is part of any of the following industries, you need cyber liability insurance:

Don’t see your business or industry here? Find out more about the types of businesses Insurance Canopy covers.

Examples of Cyber Liability Claims

A business owner clicked on a link in a phishing email, allowing a hacker to access the point-of-sale system they used to sell their products. The hacker stole customer credit card information and the business owner was sued by affected customers ($90,000).

A cybercriminal hacked into a restaurant’s online ordering feature on its website and stole customers’ credit card information. The restaurant was held liable for credit monitoring services and faced reputational damage ($15,000).

An employee at a small firm accidentally sent a file containing the Social Security numbers of hundreds of clients to the wrong recipient ($35,000).

What Does Cyber Liability Insurance Cover?

Many cyber policies cover both first and third party damages you are deemed responsible for paying after a cyberattack.

First-party coverage protects your business from direct costs associated with a cyber incident, such as:

  • Forensic fees
  • Notification costs
  • Cyber extortion payment
  • Crisis management and public relations
  • Recovering and restoring data and systems
  • Payment Card Industry Data Security
  • Standard (PCI-DSS) penalties
  • Business interruption and extra expense
  • Financial fraud

Third-party coverage pays for your liability to others due to the attack, such as:

  • Unintended disclosure of personal information
  • Credit monitoring for impacted parties
  • Regulatory fines and penalties
  • Settlement fees and court judgments
  • Attorney fees
  • Settlement costs

What It Doesn’t Cover

Some common cyber liability insurance exclusions are:

  • Bodily injury
  • Property damage
  • Failure to maintain security measures
  • War or terrorism
  • Illegal or fraudulent activities you commit
  • Pre-existing conditions

Cyber liability policies are not standardized so each may have different exclusions. Please refer to your policy documents for exact coverages, limitations, conditions, and exclusions.

How Much Does Cyber Liability Insurance Cost?

You can protect your business from the fallout of cyberattacks starting at $6.58 per month with a policy from Insurance Canopy. Considering how expensive cybersecurity claims can be, paying less than $10 a month for coverage that can save you unexpected out-of-pocket expenses is a no-brainer.

Coverage Details

Cyber Liability Coverage Limits

Aggregate Claims-Made Liability Coverages Limit of Insurance

$100,000

Privacy & Network Security

$100,000

Regulatory Fines & Penalties

$100,000

Ransom Payment

$10,000

Cyber Deception

$10,000

Deductible

$1,000

Additional Coverage You May Need

Most business owners need to extend their coverage beyond general liability insurance to properly protect themselves from the claims they’re most likely to face. Insurance Canopy offers several options for additional coverage, including:

How to Get Your Free Quote

ou can get a free quote from Insurance Canopy that includes cyber liability insurance in a few simple steps:

  1. Select your industry
  2. Start an application
  3. When prompted, select “$100,000 Cyber Coverage Limit” to add this coverage to your policy

If you already have an Insurance Canopy policy, you can easily add cyber liability coverage online through your user dashboard. Follow the video instructions below to expand your coverage today!

Why Small Businesses Love Insurance Canopy

With Insurance Canopy, you don’t have to choose between affordability and quality coverage. Instead, you get the best of both worlds: A+ rated insurance for a competitively low price. See what else our customers have to say about us!

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FAQs About Cyber Liability Insurance

To file a claim after a cybersecurity breach, simply follow these steps:

  1. Log in to your user dashboard
  2. Go to “Manage Policies” and select “File a Claim”
  3. Enter information about your claim and submit

Once we receive notice of your claim, a claims adjuster will be in touch to assist you through the rest of the process.

Cyber liability insurance is designed to cover expenses associated with the reputational damage you face from a cyberattack. This includes paying for public relations consultants, crisis management consultants, and media response to help reestablish your business’ reputation.

Yes! Cyberattacks can cost your business hundreds of thousands of dollars — or even millions — in related expenses. Restoring lost or stolen data, recouping financial losses, and recovering from the damage to your reputation after a cyberattack are all costs covered by Insurance Canopy’s cyber liability policy.

Picture of <span style="font-weight: 600; font-family: open sans; font-size:14px;">Written By:</span><br>Chris Van Leeuwen | VP of Agency Development
Written By:
Chris Van Leeuwen | VP of Agency Development

Chris Van Leeuwen is the VP of Agency Development for Insurance Canopy. He has held the prestigious Certified Insurance Counselor (CIC) designation since 1996.

Because he strongly believes in the importance of helping business owners understand their insurance coverage, Chris uses his wealth of experience to offer insights to small business owners across the country who are looking to navigate business liability insurance.

Chris Van Leeuwen is the VP of Agency Development for Insurance Canopy. He has held the prestigious Certified Insurance Counselor (CIC) designation since 1996.

Because he strongly believes in the importance of helping business owners understand their insurance coverage, Chris uses his wealth of experience to offer insights to small business owners across the country who are looking to navigate business liability insurance.

Picture of <span style="font-weight: 600; font-family: open sans; font-size:14px;">Reviewed By:</span><br>Kyle Jude | Program Manager
Reviewed By:
Kyle Jude | Program Manager

Kyle Jude is the Program Manager for Insurance Canopy. As a dedicated program manager with 10+ years of experience in the insurance industry, Kyle offers insight into different coverages for small business owners who are looking to navigate business liability insurance.

Kyle Jude is the Program Manager for Insurance Canopy. As a dedicated program manager with 10+ years of experience in the insurance industry, Kyle offers insight into different coverages for small business owners who are looking to navigate business liability insurance.

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