You May Need Cyber Liability Insurance If Your Business is Active Online


A cyber attack is a very real threat, even for small businesses—here’s how to protect your company

As a business owner, you already know the value of insurance that protects your company against many hazards that may take place on your company’s property like product liability, property damages or injuries. But what about the business activities that are taking place online?
Surprisingly, although it’s been around for about a decade, many business owners don’t even know that cyber liability insurance even exists or why they need it. Check out this guide on why your small business absolutely needs this type of insurance.

What is cyber liability insurance?

Cyber liability insurance protects your company against the many threats that exist when you conduct any type of business or are engaging with clients via the Internet. Just like your general liability coverage or your product liability policy, if anything happens as it relates to your online business operations, CLI will cover it.

Who needs cyber liability insurance?

You may be thinking that your company is not big enough to need a cyber policy. But the truth is that while we’re hearing about the data breaches that occur to big shots like Target and Sony, breaches among small businesses are more prevalent—they’re just not reported about in the news. So if you’re selling products online, storing customer data on your networks, collecting credit card and personal information or you’re engaging on social media, you need protection. Some examples of risky cyber events:


    • • Social media: Posts that may be viewed as slander, either in the event of an accidental post on the company’s account, an unintentional insult or posting of inaccurate information about a person or another company


    • • Blogging: Unintentionally giving inaccurate advice that causes harm or loss to someone who follows it


    • • Data breach: Loss of data by an outside source or a breach within the company that causes loss of personal information or the leak of private company information to outside sources


  • • Plagiarism: Reusing and taking credit for someone else’s post or online articles, whether intentional or unintentional

What does it protect against?

CLI can protect your company in various situations when it comes to your online activities. Here’s a list of some of the common coverages available:

    • Liability in the event of an intellectual copyright infringement; any damages or lawsuits against your company for the unintentional use of someone else’s online information, like blog posts or images


    • Crisis and reputation intervention and management


    • Lost revenue


    • Credit monitoring for affected customers


    • Customer notification


    • Investigation of the cyber attack


  • Business interruptions due to data breaches or loss of ability to transmit data

If you’ve never thought about cyber liability insurance before today, you’re not alone. Many small businesses don’t even realize it’s available or that they may need it. But having this type of coverage will save you money, time and your reputation if an unexpected event or breach occurs.