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What Is Cyber Liability Insurance?

Cyber liability insurance won’t prevent a hack, but it will help you recover from one. There are two main types:

  • First-party coverage, which responds to losses resulting from cyberattacks on your business network
  • Third-party coverage, which responds to cyberattacks on others’ systems or networks

Here’s a breakdown of the coverage in cyber liability policies.

You can’t outsource your liability

Even if you use cloud-based software hosted by another company, it doesn’t relieve your liability. You could be named in a lawsuit or required to provide free credit monitoring services to your customers. Depending on the severity of the breach, a vendor’s insurance limits might not be enough to cover their clients.


  • Implement cybersecurity measures: train employees, use multifactor authentication, update your software and require strong passwords.
  • Evaluate your vendors’ and partners’ cyber liability insurance and protection protocols.
  • Create a cybersecurity and data breach response plan, including insurance.

Cyber liability insurance doesn’t prevent hacks, but it provides essential support for recovery. Contact us today to ensure comprehensive coverage.