- Cyber liability insurance
Cyber liability 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 liability insurance protects professionals who handle sensitive data
Cyber liability insurance safeguards your business when credit card numbers or other personal information is compromised. If a hacker or former employee steals customer data, you could be held liable. Cyber liability insurance can cover legal fees, provide essential resources, and cover the cost of notifying affected parties.
This policy provides liability coverage related to:
- Data breaches
- Cyber extortion
What coverage can cyber liability provide for professional services businesses?
There are two types of cyber liability insurance: first-party and third-party.
First-party cyber liability insurance
First-party cyber liability insurance covers data breaches at the policyholder’s business. If a hacker steals Social Security numbers from your medical billing company, or a cyberattack exposes client information at your law firm, this insurance can cover expenses related to:
- Notifying your clients about the breach
- Providing credit monitoring for affected clients
- Paying cyber extortion demands
Third-party cyber liability insurance
When a client suffers a data breach, you could be held liable. For instance, a travel agent could be held at fault for recommending a hotel with known cybersecurity problems. Third-party cyber liability insurance protects your business from lawsuits in which a client blames you for circumstances that led to a data breach or cyberattack. This policy could help pay for:
- Attorney’s fees
- Court costs
- Settlements or judgments
Other important policies for professional services
While cyber liability insurance covers risks related to cybersecurity, it does not offer complete protection. Law firms, translation businesses, and other professional services businesses should also consider:
Business owner's policy: This policy bundles general liability insurance with commercial property insurance, often at a lower cost than if the policies were purchased separately.
Professional liability insurance: This policy, also called errors and omissions insurance for professional services, can help cover legal expenses if a business is sued for unsatisfactory work.
Workers’ compensation insurance: Required in nearly every state for businesses that have employees, workers’ comp can cover medical fees and lost wages for work-related injuries.
Get free quotes and compare policies with Insureon
Are you ready to safeguard your law firm, medical billing company, or other professional services business with cyber liability insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.