Cyber Liability Insurance

Cyber liability insurance is generally intended to respond to the financial costs of a data breach, ransomware event, or other cyber incident — including the business's own response costs (first-party) and claims brought by others whose data was exposed (third-party). Coverage terms vary by carrier.

First-party coverage is generally intended to address your own costs after an incident — breach notification, forensics, data restoration, business interruption, and cyber extortion. Third-party coverage is generally intended to respond to claims and defense costs when others allege your breach harmed them.

Usually not. Most general liability policies exclude or sharply limit cyber and data exposures, which is why a dedicated cyber policy exists. Review your policy form and confirm with a licensed insurance professional.

Any business that stores customer data, takes payments, or relies on connected systems has cyber exposure — retailers, professional offices, healthcare-adjacent businesses, and online sellers among them. Many client and vendor contracts now require it.