What does "cyber liability insurance" cover?

Cyber liability insurance specifically addresses the risks associated with data breaches and cyber attacks. This type of insurance provides coverage for various costs incurred when a business's data is compromised, including legal fees, notification costs to inform affected parties, public relations efforts to manage the fallout, and any regulatory fines that may arise from the breach.

As businesses increasingly depend on digital operations and store sensitive customer information online, the potential for cyber threats becomes a significant concern. Cyber liability insurance helps businesses mitigate the financial impact of these threats by providing a safety net against losses from incidents such as hacking, data theft, and ransomware attacks.

Other options like physical damages to business premises, liabilities related to employee accidents, or property damage from natural disasters address different types of risks covered under more traditional insurance policies, such as general liability or property insurance, rather than focusing on the specific threats posed in the digital landscape.