Cyber liability insurance has been available to businesses for about 25 years. However, it is now more critical than ever as more companies conduct business online. Nowadays, any business that stores customer data or is connected to the internet may need cyber liability protection. Here is what business owners need to know about what this coverage entails.

Who Needs Business Cyber Liability Insurance?

Almost every company that does business online or stores customer data on a computer connected to the internet needs business cyber liability insurance. Even if the customer data you collect is not that sensitive, a malicious software attack could result in days of lost revenue if you become unable to conduct business.

What Does Business Cyber Liability Insurance Cover?

Most insurance companies can create a custom liability policy that provides only the cyber coverage needed by the business. Depending on the type of business, a cyber liability policy may cover the costs of:

  • Business interruption, including lost revenue and operating expenses
  • Liability claims from customers whose data was compromised
  • Professionals you may need to hire to correct and manage a data breach or malicious attack

Investing in cyber security can help prevent cyber breaches and attacks, but they still happen. Businesses of all sizes need to ensure they have the proper business cyber liability insurance.

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