Cyber liability insurance won’t prevent a hack, but it will help you recover from one. There are two main types:

• First-party coverage, which responds to a loss resulting from a cyberattack on your business network
• Third-party coverage, which responds to cyberattacks on others’ systems or networks

Coverage Highlights in a cyber liability policy.

Client notification
• States have data breach notification laws that require companies to tell clients about a breach.

Free credit monitoring
• Services can cost $10 to $30 per month per individual. Most states require businesses to provide it for a year.

State and federal penalties
• You might be fined if you are found liable for a breach.

Legal defense costs
• You’ll need to mount a defense if a client sues you for exposing their data.

Cost to repair damages
• You’ll need tech expertise to rebuild your computer systems and networks.

Ransom negotiations
• An expert can help by removing emotions from the process and negotiating a payment reduction.

Ransom payments
• Some policies reimburse ransom payments, but the conversation around ransom payments is changing. Make sure you understand the exclusions.

Data breach due to stolen property
• Cyber liability won’t cover the cost to replace a laptop or other device (that’s property insurance), but it will respond to the data exposed due to the theft. ​