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.
A data breach can be devastating for your retail store, especially if your customers' payment information is compromised. That's why businesses that store credit card numbers or other sensitive information need a cyber insurance policy. Cyber insurance can pay for recovery costs and provide essential support and resources.
This policy provides coverage related to:
Retailers typically need first-party cyber liability coverage, which provides financial protection against cyber threats at your own business. For example, it would help a vending machine operator pay for an investigation if a cyberattack exposed customer data stored by their business.
Another type of cyber policy, third-party coverage, is recommended if you're responsible for another business's cybersecurity. For example, if you're hired to help another retailer set up shop and you recommend insecure software, you could be held liable for a data breach.
First-party cyber insurance coverage can help pay for:
Data breaches are expensive, and running a small shop doesn't mean you're safe from hackers. Small companies are often targeted by cybercriminals because they have fewer security measures in place. On top of that, simple accidents by employees – such as opening a phishing email – are the most common cyber risks.
While a cyber insurance policy covers cyber risks, it does not provide complete protection. Customer injuries or theft can occur at any retail business. Other policies for retailers to consider include:
Liquor liability insurance: If your shop sells alcohol, you likely need this policy to comply with your state's dram shop laws and protect against lawsuits.
Commercial umbrella insurance: Similar to excess liability insurance, this policy boosts coverage on a retailer’s general liability, commercial auto, and employer’s liability insurance once the limit is reached.
Are you ready to safeguard your retail store with cyber liability insurance or another type of insurance? Complete Insureon’s easy online application to compare quotes from top U.S. insurers. Once you find a policy that fits your needs, you can begin coverage in less than 24 hours.