Short answer
Cyber liability insurance helps cover the costs of a data breach or cyberattack, such as notifying affected customers, restoring systems and data, legal expenses, and certain liability to third parties. Any business that stores customer data or relies on connected systems can face these costs, so it is increasingly relevant well beyond large companies.
A standard general liability policy was not built for data breaches, ransomware, or compromised systems, which is why cyber coverage developed separately. Depending on the policy it can pay for breach notification, credit monitoring, forensic investigation, data and system recovery, legal costs, and liability claims from affected parties.
If your business holds customer information, takes payments, or depends on software and connected devices, the exposure is real even at a small scale. The right coverage depends on the data you hold and how your operations would be affected by an incident.
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