Cyber Liability Insurance

What is cyber liability insurance?

Cyber Liability Insurance is a type of business insurance policy that provides coverage for certain risks associated with the use of computers and technology. Cyber insurance for small businesses protects against common threats like malware, phishing attacks, data breaches, ransomware, stolen devices, and more. Given the daily cyber threats many industries face, ensure your business is equipped with a robust cyber insurance plan.

We know that your main job is taking care of your customers. Our job is finding you the coverage you need so you can continue doing that. The GEICO Insurance Agency has teamed up with Hiscox, America's #1 online small business cyber liability insurer, to make insurance easy for you. Together, we're here to help small business owners and contractors get the cyber liability coverage they need.

Is your business at risk of a cyberattack?

Your business may need Cyber Liability Insurance coverage if you:

• Accept credit cards or other forms of digital payment
• Use computers and mobile devices to run day-to-day operations
• Store medical and/or financial information
• Keep personal information about customers

Visit our small business insurance page to learn more about small business coverages. For more information about cyber liability insurance, contact our partner Hiscox at (800) 841-1621.

Cyber Liability Insurance Coverage Options

Navigating the digital landscape can expose your business to various cyber risks. Understanding the types of cyber liability insurance coverage is essential to protect your assets and reputation effectively. Here are the key coverage options available:

• First-Party Coverage: This insurance helps your business cover the costs of responding to a cyber attack. It includes expenses related to data recovery, customer notification, credit monitoring services for affected customers, and business interruption losses that may occur due to a breach or system downtime.
• Third-Party Defense and Liability: If your business is responsible for safeguarding client data, this coverage will protect you against claims by third parties. It includes legal fees, settlements, and any judgments that result from allegations of failing to prevent data breaches or losing sensitive information.
• Regulatory Fines and Penalties: As regulatory bodies tighten data protection laws, this coverage becomes increasingly crucial. It helps pay for any regulatory fines or penalties your business may face due to non-compliance with data protection laws and regulations.

By choosing the right combination of these cyber liability coverages, you can shield your business from the financial and operational impacts of cyber incidents. Whether you're facing a data breach, system hack, or compliance shortfall, having robust cyber liability insurance ensures you're prepared to handle challenges swiftly and effectively.

Why do you need cyber liability insurance coverage for your business?

In the digital era, where business operations are increasingly online, the threat of cyber incidents such as data breaches and cyber theft is a persistent reality. Cyber Liability Insurance is no longer a luxury but a necessity for modern businesses. This coverage plays a pivotal role in risk management strategies by providing financial protection against a range of cyber threats that can disrupt business operations, compromise customer data, and result in significant financial and reputational damage.

Cyber Liability Insurance Helps Mitigate Various Risks:

• Data Breaches: Covers the costs associated with a data breach, including customer notification, credit monitoring services, and legal fees.
• Cyber Theft: Provides protection against losses from electronic theft of funds or sensitive information.
• Business Interruption: Compensates for income lost due to a cyber event that disrupts business operations.
• Ransomware: Covers ransom payments often demanded during a cyber extortion attack, along with the cost of recovery after such an incident.
• Legal Fees and Settlements: Addresses costs arising from lawsuits due to failure in protecting customer data or not complying with data privacy laws.

Every company, regardless of size, that handles sensitive data or relies on digital systems to conduct business needs to consider Cyber Liability Insurance. It ensures that in the face of a cyber incident, your business can respond quickly and effectively, minimizing downtime and maintaining trust with your customers. Investing in cyber insurance means investing in the continuity and security of your business. Please note that certain exclusions may apply to your coverage, so speak to one of our insurance specialists for more information.

What does cyber liability insurance cover?

Cyber liability coverage can protect your business from claims that arise from day-to-day business operations such as:

• Ransomware & Extortion Costs: Financial assistance for ransom payments and restoring access to locked systems or data.
• Phishing & Network Outages: Compensation for losses caused by deceptive email attacks or network disruptions tied to covered incidents.
• Legal Defense: Payment for attorney fees, court costs, and settlements related to data privacy or security lawsuits.
• Regulatory Fines: Coverage for fines or penalties issued by government agencies after a compliance failure or breach.
• Breach Response Services: Access to expert teams for incident response, legal guidance, and customer communication.
• Forensic Investigations: Investigative services to pinpoint the source, method, and scope of a cyberattack.
• Crisis Management & PR: Resources for managing public fallout, protecting your brand, and communicating with stakeholders.
• Business Interruption: Reimbursement for income lost while systems are offline or your business operations are halted.
• Customer Notification & Monitoring: Support with notifying affected individuals and offering credit monitoring to reduce liability.

How Cyber Insurance Protects Small Businesses Like Yours

Cyberattacks aren't just a big business problem. In fact, small businesses are increasingly being targeted because they often lack the resources to implement robust cybersecurity measures. If your business collects customer data, processes payments, or operates online, you're at risk.

Common Small Businesses That Should Consider Cyber Coverage:

• Retailers: Handle large volumes of customer and payment data daily.
• Restaurants: Often use cloud-based point-of-sale (POS) systems, which are vulnerable to breaches.
• Hair Salons & Barbers: Store client information for appointments and marketing.
• Contractors: Share sensitive plans and communicate through digital channels.
• Real Estate Agents: Deal with private client documents and financial records.
• Consultants: Rely on virtual meetings, emails, and document sharing.

Cyber insurance can help cover costs associated with data breaches, business interruption, legal fees, and more, giving small business owners peace of mind and a path to recovery if the unexpected happens.

What is not covered by cyber liability insurance?

It's important to be aware that cyber liability insurance doesn't cover every type of claim and contains exclusions. You might need other types of business insurance to complete your comprehensive protection plan. Here are some additional types of insurance to consider along with your cyber liability coverage:

• General liability insurance: Covers claims that your business caused property damage or bodily injury.
• Professional liability insurance: Protects against claims of mistakes or omissions in providing professional services.
• Employment practices liability insurance: Helps cover employee claims of harassment, discrimination or wrongful termination.
• Commercial property insurance: Helps cover your business's owned or rented physical location and equipment.
• Business Owners Policy (BOP): Includes general liability plus property protection.
• Commercial Auto Insurance: Personal auto lines of insurance aren't enough to cover vehicles used for business purposes.

What affects the cost of cyber insurance?

The cost of cyber liability insurance for small businesses can vary based on several key factors. Understanding what influences your premium can help you choose the right amount of coverage for your risk level and budget.

Here are some of the most common factors that impact cost:

• Business Size & Revenue: Larger businesses or those with higher revenue often pay more due to increased exposure.
• Industry Type: Businesses in high-risk industries (like healthcare or finance) may face higher premiums.
• Customer & Data Volume: The more personal data you store or process, the greater the risk and cost.
• Cybersecurity Measures: Strong protections, like firewalls, employee training, and encryption, can help reduce your rate.
• Claims History: Previous cyber-related claims may increase future premiums.
• Coverage Limits & Deductibles: Higher coverage amounts and lower deductibles can raise your premium, but offer more protection.

Understanding these variables can help you tailor a cyber insurance policy to fit your unique business needs and risk profile. GEICO Insurance Agency can help you find the right coverage at a great price. Start your cyber liability insurance quote by calling our partner Hiscox at (800) 841-1621.

Get Cyber Liability Coverage for Your Business Today

Protect your business from digital threats with Cyber Liability Insurance. Take immediate steps to safeguard your operations and financial stability.

Speak with an insurance Agent About Cyber Insurance

Call us at (866) 509-9444

Monday to Friday from 8:00 AM to 10:00 PM (ET) S

Saturday from 9:00 AM to 7:00 PM (ET).

We can help clarify your coverage options and ensure you are fully protected from cyberattacks.