Cyber liability insurance, also called cybersecurity insurance, protects small businesses from the high costs of a data breach or malicious software attack. It covers expenses such as customer notification, credit monitoring, legal fees, and fines.
Cyber insurance protects accountants, auditors, and other financial professionals when sensitive data is stolen or compromised. If your clients are affected by a cyberattack, you could be held liable. This policy can cover legal fees and expenses while also providing vital resources to help you recover.
This policy provides liability coverage related to:
There are two kinds of cyber liability insurance: first-party and third-party.
First-party cyber liability insurance covers cyberattacks and data breaches at your place of business. It provides vital protection for any business that handles financial transactions, Social Security numbers, and other sensitive client information. This policy can cover expenses related to:
If one of your clients suffers a data breach or cyberattack and holds you responsible, you could face a lawsuit. For example, a tax preparer could recommend software that turns out to be compromised. The affected client might decide to sue the tax preparer to recoup expenses. Third-party cyber liability insurance can shield your business from legal expenses related to a data breach by paying for:
While cyber liability insurance protects against data breaches and cyberattacks, finance and accounting businesses face many other risks. Financial professionals should also consider:
Professional liability insurance: This policy covers legal costs related to your work performance, such as a client who sues because your advice caused a financial loss. It's sometimes referred to as errors and omissions insurance (E&O).
Fidelity bonds: Also called employee dishonesty bonds, fidelity bonds compensate clients in the event of employee theft. They're often required by client contracts.
Are you ready to safeguard your small financial business with cyber liability insurance? Complete Insureon’s easy online application to compare quotes from top U.S. carriers. Once you find a policy that fits your needs, you can begin coverage in less than 24 hours.