Cyber Liability
Insurance
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Why Does My Business Need Cyber Insurance?
Typically, General Liability Insurance
Does Not Cover Cyber Attacks.
With the ever-increasing use of technology in business today, the need for Cyber Insurance exists for any business that uses a computer. With the rise of frequency in ransomware as well as social engineering / financial fraud / crime claims, this coverage is more important than ever for all businesses, especially small businesses.
With out
With
With cyber liability insurance, you can take the attack in stride, dealing with the challenges and obstacles of a cyber attack while maintaining a similar financial position your business enjoys today.
Cyber crime does not discriminate. The potential negative impacts are as diverse as the threat types—and businesses of any revenue amount or customer base size can be affected.
A Few Facts About Cyber Attacks
During the pandemic cyber attacks increased by over 600% from the previous year.
On average, 47.6% of small businesses are hit by cyber attacks.
The average small business received 94% of its detected malware by email.
About 83% of small businesses haven’t put cash aside for dealing with a cyber attack.
What Does Cyber Insurance Cover?
A cyber liability insurance policy offers a number of coverages to protect from both first-party & third-party damages. Examples of available cyber coverages are below.
First-Party Coverage:
First-party coverage protects an organization from the costs they may face should their own assets be damaged and need repair.
Within a cyber policy, coverages may include:
IT Forensic Costs: The costs to determine what information was breached and the cause of the breach.
Notification Expenses: The costs to notify individuals, businesses, and regulators of the breach and possibly run a call center related to this notification.
Credit Protection Costs: The costs to provide credit monitoring services to any affected parties.
Crisis Management Costs: The costs for media relations, including a possible public relations firm. How your organization publicly responds to a breach is crucial in maintaining the public’s trust.
Crime and Social Engineering: The cost of stolen funds in which your organization may have been tricked into sending to a fraudulent account.
Third-Party Coverage:
Third-party coverage protects your organization from claims that could be made against you by another individual or business.
Personally Identifiable Information (PII): This can include, but isn’t limited to:
Credit card numbers
Social security numbers
Bank account information
Personal health information
Sensitive corporate information
Third-party claims related to, but not limited to:
Breach of contract
Negligent protection of data
Network security breaches
Transmission of software viruses
Denial of service attacks
PCI fines, penalties, and assessments
Additional Coverages:
Multi-Media Coverage: This covers the cost of possible online advertising, intellectual property, copyright or trademark infringement, and libel or defamation claims.
Cyber Extortion: This covers the cost of a possible ransom demand in the event of a ransomware cyber attack.
Cyber Business Interruption: This coverage is available for companies that rely heavily on the internet or their network for revenue. This may also include dependent business interruption, which can provide coverage when a third party that your organization relies on goes down or system failure where an outage is not caused by a breach.
Hacker Damage or Digital Asset Damage: This covers the cost to rebuild your:
Website
Intranet
Network
Electronically-held data
What Are The Potential Costs?
Below is a breakdown of the average costs of a breach based on NetDiligence research.
Breach costs — are only costs associated with the event & reported by the insurer.
Average cost for small and medium enterprises (SME): $178K
Average cost for large enterprises: $5.6M
Crisis services costs — expenses associated with responding to the breach; including breach coach counsel, forensic investigation, customer notification, credit / ID monitoring, & public relations.
Average cost for SMEs: $112K
Average cost for large enterprises: $3.8M
Legal costs — regulatory & legal expenses including lawsuit defense, lawsuit settlement, regulatory action defense, & regulatory fines.
Average cost for SMEs: $181K
Average cost for large enterprises: $2.2M
Lost business costs — is income lost due to the suspension of service.
Average cost for SMEs: $343K
(Data was not available for large enterprises.)
Unfortunately, during the months and even years after a breach, costs can continue to grow as those affected take legal action and penalties are imposed.
Cyber Security Is More Important Than Ever Today!
For Questions & Help With Your Cyber Liability Insurance Needs
Contact us:
Cyber Liability Insurance in Orlando, FL
Data breaches, ransomware attacks, and cyber fraud aren't just problems for big corporations anymore. Small and mid-size businesses are the primary target — 43% of cyberattacks target businesses with fewer than 250 employees, and 60% of small businesses that suffer a major breach go out of business within six months. Cyber liability insurance is no longer optional.
What Cyber Liability Insurance Covers
First-Party Coverage
(Your costs)
- Data breach response (forensics, notification, credit monitoring)
- Ransomware payments and negotiation
- Business interruption from cyber events
- Data recovery and system restoration
- Crisis management and PR
- Regulatory fines and penalties
Third-Party Coverage
(Claims against you)
- Lawsuits from affected customers
- Regulatory investigations and defense
- PCI-DSS fines if payment data is compromised
- Media liability (defamation, IP infringement online)
- Network security liability
Who Needs Cyber Insurance?
Any business that stores customer data, processes payments, or relies on computer systems — which is virtually every business today. Especially at risk:
- Healthcare providers — HIPAA breach penalties can reach $1.9 million per violation category
- Professional services — Accountants, attorneys, consultants handling sensitive client data
- Retail and e-commerce — PCI compliance requirements for payment processing
- Financial services — High-value targets for social engineering and wire fraud
- Any business with email — Business email compromise (BEC) scams cost businesses $2.7 billion in 2023
Frequently Asked Questions
How much does cyber liability insurance cost?
Small businesses in Orlando typically pay $500-$3,000/year for $1 million in coverage. Rates depend on your industry, revenue, data volume, and security practices. Businesses with strong security controls (MFA, encryption, employee training) get better rates.
What's the average cost of a data breach for a small business?
The average cost is $120,000-$150,000 including forensics, notification, legal fees, and lost business. That's before regulatory fines and lawsuits. A cyber policy costing $1,000/year can cover a six-figure incident.
Does cyber insurance cover ransomware?
Most cyber policies cover ransomware events including: ransom payment (if negotiation fails and payment is the best option), forensic investigation, system restoration, business interruption during downtime, and notification to affected parties. Some carriers now require MFA and endpoint detection as prerequisites for ransomware coverage.
Don't Wait for a Breach
Cyber threats are growing. Protect your business, your data, and your customers with the right coverage.
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