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Cyber Liability Insurance is a Must Have in Your Cyber Security Arsenal

July 15, 2019

Cyber Liability Insurance is a Must Have

According to the Symantec 2019 Internet Threat Security Report (ISTR), spear-phishing (targeted) emails remained the most popular attack method and were used by 65 percent of all known offender groups. The percentage of users hit with malicious email trended up during 2018. One out of every 412 emails contain a malware attack, and 7,710 organizations are hit by a Business Email Compromise Attack every month.

Symantec and other network and email security protection providers today warn that businesses need a comprehensive security approach to protect cloud and internal email systems from new, sophisticated threats.

Has your email address ever been hijacked by a spoofing scam? Are you prepared for the inevitable data breach or the day your network is held for ransom? Network security alone cannot entirely protect your business’ data. No firewall is 100% secure. You can maintain control, however, if you have the right Cyber Liability Insurance Team behind you. Work with an experienced cyber liability insurance agent or broker to find a policy and a reliable provider to guide you through the chaos of a security breach.

What you Should Expect from a Cyber Liability Insurer

A cyber insurance provider should offer the following support in the unfortunate instance of a cyber security breach:

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What to look for in Cyber Liability Coverage Features:

  1. If Cyber Liability exposures are covered under your Professional Liability, Media liability or Tech E & O Insurance, be aware of sub limits that cap the amount the insurer will pay for certain covered expenses. Also, with a shared limit of liability for cyber and professional liability, a substantial cyber loss can deplete, or exhaust coverage needed for your professional liability exposure. A standalone cyber liability insurance policy is a wise choice.
  2. Obtain coverage that extends to the cost of computer forensics following a loss.
  3. Business interruption coverage should be a core feature of a Cyber Liability Insurance policy. Most businesses do not have the internal expertise to value the loss and absorb the cost of hiring experts to submit a business interruption claim. A Cyber Liability Insurance product should pay for forensic accounting services to assist with proof of loss statements and claim recoveries. Not all do.
  4. Most Cyber Liability Insurance policies that include business interruption coverage use the standard business income loss calculation based on revenue received during the outage period and not hours billed. A professional services firm could lose hundreds of billable hours from a virus following a loss and not be able to recover the lost income from their insurance company. Look for a Cyber Liability Insurance product that is designed for the way in which you do business.
  5. Look for coverage for transmission of a computer attack or computer virus to others due to misuse of the company’s computer system.


Be aware that Cyber Liability Insurance policies can include minimum security requirements for coverage to apply. They include antivirus software, firewalls and encryption. It may be a requirement to maintain an on-going patch management process and store all data on mobile data storage devices or media in an encrypted format including smart phones, USB devices, laptops, tablets, backup tapes and discs.

The information provided above is for illustrative purposes only. Always consult with an insurance agent or broker on the needed coverage features for your business. The actual policy terms and conditions will apply in the event of a claim.

Editors Note: This post was originally published in November 2018 and has been completely revamped and updated for accuracy and comprehensiveness.

Coverage and support information provided by SafeLaw.

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