Cyber Liability
Cybercrime is evolving fast—and businesses of all sizes are targets. Ransomware attacks, phishing schemes, and social engineering scams like business email compromise have become increasingly sophisticated. Criminals impersonate vendors, executives, or clients to trick employees into wiring funds or handing over credentials. A single click on a fraudulent email can lead to a six-figure loss.
A cyber liability insurance policy helps cover the costs associated with data breaches, ransomware attacks, funds transfer fraud, and other cyber incidents—costs that can quickly overwhelm a business without proper coverage.
In general, businesses that need a cyber liability insurance policy:
- Store sensitive customer data (names, addresses, Social Security numbers, credit card information)
- Process online payments or transactions
- Rely on computer systems and networks to operate
- Are required by clients or contracts to carry cyber coverage
- Want protection against the financial fallout of a data breach or cyberattack
What Does Cyber Liability Insurance Cover?
Cyber liability insurance typically provides two types of coverage: first-party and third-party.
First-party coverage protects your business directly and may include:
- Data breach response costs (forensic investigation, customer notification, credit monitoring)
- Business interruption losses due to a cyber event
- Ransomware payments and extortion expenses
- Data recovery and system restoration costs
- Social engineering and funds transfer fraud losses
- Crisis management and public relations expenses
Third-party coverage protects your business from claims made by others and may include:
- Legal defense costs if customers or partners sue over a breach
- Regulatory fines and penalties
- Settlements or judgments related to the breach
- Media liability for website content
What Businesses Should Consider a Cyber Liability Policy?
Any business that uses computers, stores data, or operates online faces cyber risks. Some businesses that may want to consider a cyber liability policy include:
- Healthcare providers
- Professional service firms (accountants, attorneys, consultants)
- Retailers and e-commerce businesses
- Manufacturers
- Contractors and trade businesses
- Any business that would suffer significant disruption if their systems went down
Interested in learning more about a cyber liability insurance policy for your business? At Knight-Dik Insurance, we’ll work with you to design coverage that protects your business from a variety of risks, unique to you. For a free insurance premium analysis, simply call 800-286-6353.
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