What is Cyber Insurance?

cyber liability coverage

Cyber crime rates continue to climb with more and more businesses at a potential risk every day. One of the most important steps a company can take to protect itself is to purchase cyber liability coverage.


Cyber insurance is a relatively new coverage. Its roots started about two decades ago with technology errors and omissions (E&O) coverage. That coverage primarily addressed claims resulting from a virus affecting a customer, malware disrupting another company’s network and unauthorized access or destruction of data. This type of E&O coverage was typically only purchased by companies in the technology arena.

As the world of technology continued to change, other companies with access to sensitive information realized the benefit of this coverage. The technology E&O policies were not broad enough to cover the exposures of a changing world. Cyber insurance was born.


Today, cyber liability coverage has become a necessity for any company that processes payments or has access to sensitive personal information. Current policies provide coverage for viruses, data compromise and even the improper disposal or misplacement of hardcopy records. The coverage usually includes dollar amounts to cover data recovery, legal fees, client notifications and electronic data processing equipment repairs.

Every business that has access to any type of client data should have cyber liability coverage. If your business is not already covered, make an appointment today with a qualified insurance professional to discuss appropriate options.