How Does Cyber Liability Insurance Work?

how does cyber liability insurance work

The United States has the world’s highest average data breach cost at 9.36 million. Let’s explore how cyber insurance works so you can keep your business protected.

What is Cyber Insurance?

Cyber insurance covers your business’s liability for a data breach or other cyber incidents involving sensitive customer information, such as credit card numbers, account numbers, driver’s license numbers, and health records.

How Does Cyber Insurance Work?

There are two main components to cyber insurance: first-party and third-party coverage. First-party cyber insurance covers the direct costs of a cyberattack or data breach. Third-party cyber insurance covers legal liabilities or damages that a third party may incur because of the cyberattack.

What Does Cyber Insurance Cover?

Cyber insurance can cover:

  • Notifying customers about a data breach or cyber incident.
  • Restoring your company’s reputation.
  • Restoring personal identities of affected customers.
  • Recovering compromised data.
  • Repairing damaged computer systems.
  • Legal fees and expenses if your business is held liable for damages resulting from a cyber incident.

Let’s Talk

Any business that stores sensitive financial, payment, or customer data needs cyber liability insurance. With cyberattacks on the rise, it’s more about when they will happen than if. Call or text one of our experienced Avery Hall agents today at 410-742-5111 for a free consultation.


How Can Avery Hall Help You?
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