Cyber Liability: A Business Coverage Necessity


Over the past decade, cyber-attacks have become increasingly more frequent. So frequent in fact, that it seems like we can hardly take a breath in between news of notable cyber-attacks that have American consumers rushing to change their passwords or take some other precaution to guard their data, which might have already been compromised.

From large corporations and financial institutions to small local businesses, it seems data breaches, hacks, ransomware, and phishing have become common. Worst of all, they have also become more aggressive and insidious.

Although the cyber-attacks we hear about most are those that occur within large corporations, small and mid-sized businesses now account for 62% of all cyber-attacks*. As a result, the need for a Cyber Liability policy has become a necessity for businesses of all sizes.


What Does a Cyber Liability Policy Cover?

A Cyber Liability policy is designed to cover liability and property losses that result from a business’ online activities, such as storing customer information (e.g., credit card numbers, Social Security numbers) and selling products online.

Perhaps most importantly, a Cyber Liability policy would cover a business' expenses associated with data breaches or hacks, which can be significant. Specific expenses covered by this type of policy often include the following*:

  • Property exposures from data loss or destruction
  • Computer fraud
  • Funds transfer loss
  • Cyber extortion
  • Loss resulting from identity theft
  • Website media content
  • Business lost during attack
  • Loss of company assets
  • Damage to reputation
  • Litigation
  • Protection costs related to staff, firewalls, encryption, and software
  • Notification to affected customers
  • Potential loss of customers
  • State and federal fines (if security plan and other required processes were not followed)
  • Decline in share value and business income
  • Post-breach implementations of firewall, encryption, security plans, etc.


Is a Cyber Policy Right for Your Business?

Every business has different needs and exposures, and no two Cyber policies are exactly alike. Terms and conditions vary from one insurance company to the next, so it’s important for business owners to work with their insurance agents to evaluate risk and determine what is most suitable for their needs.

If you would like more information on how a Cyber Liability policy can protect your business in the event of a cyber-attack, don’t hesitate to contact our team at J. Hoffman Insurance at 845-239-4787 or





*SOURCE: Big I – Cyber Liability