Common Question About Cyber Liability Insurance
You Ask, We Answer
Any business that handles sensitive customer information, such as personal data, financial data, or medical records, should consider cyber liability insurance. And this includes firms of all sizes, ranging from small startups to large enterprises. Cyber threats are prevalent; a single incident can have severe financial and reputational consequences.
Cyber liability insurance policies can vary in coverage, so reviewing the specific policy terms and conditions is essential. While policies generally cover many cyber incidents, particular exclusions may apply. Typical exclusions may include deliberate acts, fraudulent activities, or criminal acts committed by the insured.
Some cyber liability insurance policies offer proactive risk management services, such as cybersecurity assessments, team member training, and incident response planning. These services can help businesses strengthen their security posture and reduce the risk of cyber incidents.
Cyber liability insurance is generally not mandatory by law. However, specific industry regulations or contractual agreements with clients or business partners may require businesses to carry cyber liability insurance as a condition of doing business.