What Is Cyber Liability?
Cyber Liability insurance is designed to respond to the costs that follow a data breach, ransomware attack, or other cyber incident — from notifying affected customers to responding to regulators and restoring your systems. It's a coverage most standard policies don't include, which is why it's typically purchased separately.
Who Needs It
Any business that stores customer data, processes payments, or depends on computer systems to operate can be a target. Smaller businesses are increasingly targeted by cybercriminals, partly because attackers assume smaller companies may have fewer defenses in place.
Real-Life Claim Scenarios
Ransomware Locks Business Systems
A ransomware attack encrypts your files and systems, halting operations. Cyber liability coverage may help with the extortion response, negotiation support, and costs to restore systems, subject to policy terms.
Customer Payment Data Breach
A hacker gains access to a database containing customer credit card information. Coverage may help pay for breach notification, credit monitoring, and related legal and regulatory response costs.
Employee Falls for a Phishing Scam
An employee clicks a phishing link that compromises company email and customer records. Cyber coverage may help with forensic investigation and notification costs tied to the incident.
Business Interruption from a Cyber Event
A cyberattack takes your systems offline for several days, halting sales. Business income loss tied to the cyber event may be covered under the cyber policy, subject to its terms.
Third-Party Vendor Breach Affects Your Data
A cloud vendor you use suffers a breach that exposes data you're responsible for. Cyber liability may help with your notification obligations and related liability, subject to policy terms.
What It May Help Cover
- Data breach notification costs
- Credit monitoring services for affected customers
- Ransomware extortion payment and incident response costs
- Business income loss tied to a covered cyber event
- Third-party liability for failing to protect customer data
- Regulatory defense costs and applicable fines, where insurable
- Public relations and crisis management support
Coverage Limitations
Cyber policies vary significantly in what they cover, and standard BOP or GL policies generally do not cover cyber incidents. Coverage for regulatory fines may be limited by state law, and specific sub-limits often apply to notification, forensics, and extortion costs, subject to underwriting.
Industries That Commonly Need This Coverage
What You'll Need for a Quote
- Types of customer or employee data collected and stored
- Annual revenue and number of records held
- Current cybersecurity practices, such as multi-factor authentication and backups
- Whether you accept online payments
- Any prior cyber incidents or breaches
- Third-party vendors with access to your systems or data
Upload Insurance Requirements for Review
Have a certificate request, lease clause, client contract, or vendor requirement tied to cyber liability? Upload the document and a Casurance specialist can review the requested limits, wording, and additional insured language.
Frequently Asked Questions
Related Coverages
Get a Cyber Liability Quote
Tell us about your business and a Casurance specialist can help you review Travelers cyber liability options, subject to underwriting approval and coverage availability in your state.
Coverage described on this page may help address certain risks common to this coverage line, subject to policy terms, conditions, exclusions, and underwriting approval. Coverage availability, limits, and pricing vary by state and are not guaranteed. This page is for informational purposes only and is not an offer of coverage or legal advice.
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