Cyber Liability Insurance
First- and third-party coverage for data breaches, ransomware, business interruption from network events, and funds-transfer fraud.
Who Needs It
- Any business that stores customer data, takes payments, or depends on email and systems
- Health care, professional services, real estate, contractors paying vendors by wire
What It Covers
- Breach response: forensics, notification, credit monitoring, legal
- Ransomware and cyber extortion
- Business interruption from a network outage
- Funds-transfer and social-engineering fraud (sublimited; ask)
- Regulatory fines where insurable
- Third-party liability for data you hold
What It Does Not Cover
- Losses where required controls (MFA, backups) were not in place at inception
- Contractual penalties
- Bodily injury and property damage
- Prior known incidents
- Infrastructure failures outside your control
Texas Notes
Texas Business & Commerce Code §521 breach-notification duties and TDI cybersecurity expectations for agencies make response coverage a practical necessity.
Florida Notes
Florida Information Protection Act (FIPA) imposes 30-day notification; regulatory-defense coverage matters.
Cyber Liability Insurance Questions We Hear Most
Why do carriers ask about MFA?
Multi-factor authentication on email, remote access, and backups is the single largest predictor of ransomware outcomes. Many carriers now require it to bind.
Does cyber cover a wire sent to a fraudster?
Only if social-engineering / funds-transfer fraud coverage is included and its sublimit is adequate. Confirm it; it is often $100K or less by default.
Does a prior claim mean I can't get coverage?
Rarely. Carriers price and underwrite on frequency and severity over three to five years. One closed claim usually narrows the market slightly; a pattern narrows it a lot. Tell us everything up front; an undisclosed claim found at binding is worse than a disclosed one.
Related Coverage Guides
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