Cyber Liability Insurance

Cyber Insurance covers the cost for a business to recover from a data breach, virus, or other cyber-attack. Any business that stores sensitive data in the cloud or on an electronic device should have cyber liability insurance. It applies only to acts, errors or omissions of an Insured, committed after the Retroactive Date and also covers legal claims resulting from the breach.
There are numerous ways that a cyber-breach can occur. For example, hackers can send phishing emails to customers in which they masquerade as your company. Businesses that store personally identifiable information (PII) for employees or customers should have stand-alone or enhanced cyber liability insurance. PII includes any data that can be used to identify a particular individual, such as name, data of birth, email address, social security number, credit card number, or bank account number.

There are two types of coverage:

Third-party Coverage

A. Data Liability

Loss of personal Information

Loss of Corporate Information


Net work Security

First Party coverage


Data administrative investigation

Data administrative fines.


Proactive forensic services

Repair of company reputation

Repair of Individual reputation

Notification to data subjects


Electronic Data

Limits of liability

Aggregate Limit of Liability per Policy Period is for all Losses under various covers combined i.e. A, B, C & any optional extensions Purchased. The following will have sub limits

Data administrative investigation

Data administrative fines.

Proactive forensic services

Repair of company reputation

Repair of Individual reputation.

Restoring, recreating, or recollecting electronic data

General Policy retention

Waiting hours Period for Network Interruption

Add on covers

Multi Media Liability

Cyber/Privacy Extortion

Network Interruption


Compared to other types of business insurance, the cost of cyber liability insurance is higher because the fallout can often be much greater. Factors that decided the Premium are

Coverage limits: The higher and more complex your coverage needs, the more expensive your policy will be. For example, if your company uses multiple servers or if you store a lot of customer data, your insurance will be more expensive.

Data access: Limiting access to sensitive data can help you save money. For instance, if you grant data access only to senior employees, that could help. Having an in-house security expert can lower costs as well.

Security measures: Effective security measures, such as installing antivirus software and network firewalls and regularly updating your passwords, can lower your Premiums.

Industry: A business that operates primarily online will face more cyber threats, and pay correspondingly more, than a brick and mortar business with a low-traffic website. Similarly, businesses in certain industries—like healthcare and accounting—that store the most sensitive types of data will also pay a higher Premium.

Claims history: If you have a history of multiple claims, the insurance company might charge you a higher Premium.

Common Assignment:

Bodily injury or property damage claims: Cyber liability insurance won’t protect claims of bodily injury or property damage.
Loss of property: Losing a piece of property, like a phone or computer
Criminal activity: Typically, a cyber-liability policy won’t insure against fraud, robbery, employee theft, or other crimes.