After a data breach or cyberattack, cyber liability insurance compensates your tech business for any costs related to the incident, including lawsuits filed by your clients. Find answers to common questions about this policy.
Cyber liability insurance isn't required by law, but some clients may require you have it before they will hire you. This policy provides key coverage that could protect your business from bankruptcy if a client files a cyber liability lawsuit against your business.
Because of the high risk of data breaches and cyberattacks in the technology industry, every tech business should seriously consider purchasing cyber liability insurance.
First-party coverage can help pay for recovery from a data breach or cyberattack at your business. It covers the cost of paying ransoms, investigating the breach, and notifying customers. Third-party coverage offers protection if a client sues you for failing to prevent a data breach or cyberattack at their business.
Cyber liability insurance covers the immediate costs of a data breach or cyberattack, such as:
It also covers the legal costs of lawsuits related to a data breach or cyberattack, such as:
Errors and omissions policies for tech companies usually include cyber liability coverage. The package is called technology errors and omissions insurance, or tech E&O.
Yes. Even if your business wasn't at fault, you may be sued by a client who believes your company failed to prevent a data breach. Cyber liability insurance covers your legal expenses and settlement, even if the lawsuit never makes it to court.
It depends, since your cyber liability policy will cover liabilities specific to your business. To determine an insurance premium, your insurance provider will take into account your level of risk and claims history. The deductible, policy limits, and type of coverage you select will also affect your rate.
It may be tempting to simply go with the least expensive quote, but make sure you also take into account:
With TechInsurance, you can compare quotes from several carriers, which is an easy way to save money on business insurance. Beyond comparison shopping, a business owner looking to save money on insurance can also:
Because it's often written as a claims-made policy, cyber liability insurance only covers a claim if the incident and resulting lawsuit happen while the policy is active.
That's why it's important to maintain uninterrupted coverage, because long stretches of time may pass between an incident and the resulting lawsuit in states that have lenient statutes of limitations.
Most new tech businesses purchase a cyber liability policy early on and maintain the policy for the life of their business, so there are no gaps in coverage.
If you think your business might be exposed to risk now or in the past because you’ve let a prior policy lapse, bring it up with your insurance agent. There may be ways to extend your protection.
It takes just a few minutes to complete our online cyber liability insurance application. In most cases, we’ll show you quotes as soon as you finish the application.
When you purchase a policy, we’ll email you a certificate of insurance right away. The certificate of insurance is the formal proof of insurance that you need to show when you apply for professional licenses or sign certain contracts.
Our business insurance application asks for basic information about your company, such as its location, number of employees, and estimated revenue.
When you finish the application, you'll receive quotes from multiple carriers. Look them over and pick the one that works best for you. If you need help, a licensed insurance agent is available to assist you throughout the process.
To make a cyber liability insurance claim, contact your insurance provider directly. They will ask for:
Your insurance agent can help guide you through the process and answer any additional questions.
To change the policy limit of your cyber liability insurance policy, simply contact your TechInsurance agent at any time to see all your options. The agent can adjust the policy limit to give you more or less coverage, and provide assistance if you need to purchase additional insurance policies for your business.
If you cancel your cyber liability insurance policy before it expires, you run the risk of paying more for the same policy later down the road. Insurance companies typically charge higher rates to businesses that cancel policies.
Because cyber liability is often a claims-made policy, it only provides coverage if both the incident takes place and the lawsuit is filed while the policy is active. In some cases, years can pass before a client decides to sue over an incident.
That's why it’s important to keep your policy active to ensure you’re protected against clients who sue at a later date.