If you go into a business today, chances are you will encounter technology in many forms. From the card reader you use to pay for your purchase to the computer sitting on the desk they may use for inventory or customer management; businesses today are using technology more and more. With this increased use of technology, comes increased risk.

There are many different types of risks that are associated with a business using technology. These include data breaches, malware attacks, loss of data, hacking, and much more. These used to just be issues of massive corporations but now we hear about the local police stations and schools being held hostage for money at the risk of their private data being leaked. So how do you protect yourself? How do you prevent an attack that you can’t even see happening? The answer is prevention and protection.


Businesses can implement policies and procedures to prevent these attacks from happening. These can include:

  • Train employees in cybersecurity basics
  • Install, use, and update antivirus and antispyware on all business computers
  • Use a firewall for internet connections
  • Make sure that your operating systems and applications are updated
  • Keep backup copies of any important business data
  • Monitor and control physical access to computers and network equipment
  • Ensure that your wi-fi is secured and protected
  • Require each employee to have their own user account
  • Limit employee access to data and information
  • Regularly change passwords

These steps can help you to prevent cyber attacks from happening. You can also seek out a third-party provider who can oversee your security monitoring and can provide a customized solution to ensure that you are doing everything needed to prevent an attack.

While prevention is very important, it cannot guarantee that an attack will never happen. This is where the protection step comes in.


In the event that a cyber-attack does happen, you will want to make sure you and your business are protected from fallout. This is where Cyber Liability Insurance comes in. Cyber Liability Insurance can cover:

  • Data loss and system damage
  • Business interruption
  • PR/Crisis management
  • Notification expenses
  • Regulatory investigation expense
  • Content liability

While cyber insurance is still relatively new to the insurance world, it is very complex and diverse. However, most cyber insurance will still fall into two types of coverage.

The first type is a first-party coverage. This type of cover is designed to cover costs associated with the direct response to a cyber-attack. This means that if an attack occurs, first-party coverage will provide funds to help immediately. Some examples of first-party coverage include the cost of credit monitoring and crisis management, legal advice related to an event, and hardware replacement or data restoration.

The second type is a third-party liability. This type of coverage is designed to cover associated costs that arise from a cyber event. This means that if an attack occurs, third-party liability will provide funds to help with delayed costs. Often, the costs of a cyber-attack exceed the first-party coverage amounts. Some examples of third-party liability include the cost of privacy liability lawsuits brought by employees or customers affected by a data breach, a breach of contract or negligence lawsuits, and investigations, fines, and penalties levied by regulators.

Cyber threats are endless, and one could purchase extensive coverage for every possibility but for most companies that are not necessary. Most companies won’t need coverages that cover rare or unlikely risks. Your independent agent can work with you to determine your specific risks and help to identify which coverages you will benefit from. They can also help to address any concerns you may have with exclusions or provisions that your policy may include.

Give us a call at 844-GANNONS to discuss your cyber liability insurance needs and start getting protected today!