Cyber Insurance

What is cyber insurance?

Cyber insurance covers the risks that come with running a business online, risks a standard liability or property policy typically won’t touch. As more of your business runs through email, websites, and stored customer data, a single breach or attack can create costs no other policy is built to handle.

What it covers

• Data breaches, including the legal claims, security fixes, and public relations costs that follow one
• Cyber extortion, if hackers hijack your website, network, or stored data and demand payment to release it
• System failure, covering data or code lost to a disaster or malicious activity
• Business interruption, for revenue lost while a cyberattack has your systems down
• Third-party damages, if your business is held liable for something like a virus-infected email or faulty software you distribute
• Online liability, covering exposure to libel, copyright or trademark infringement, and defamation tied to your online presence

Who needs it

Any business that stores customer data, takes payments online, relies on email, or simply has a website carries some level of this risk, which in practice means almost every business today. The more customer or financial data you hold, the more this coverage matters.

What it typically doesn’t cover

• Physical damage to computer equipment (that’s covered under property insurance)
• Losses from employee theft or internal fraud (that’s crime and fraud coverage)
• Reputational harm without a documented financial loss attached