Cyber Liability Insurance

Cyber Liability Insurance in Minnesota

Cyber liability insurance (cyber insurance, for short) is a type of commercial insurance that protects businesses from a broad range of cybercrimes and technology-related attacks. General liability insurance and commercial crime insurance plans do not generally cover cybercrime, so it’s necessary for many businesses, both large and small, to have a plan that protects them from these types of attacks. 

What Does Cyber Liability Insurance Cover

Cyber insurance plans protect businesses by covering their losses incurred from cybercrimes. These can include data breaches, hacks, computer fraud, and many other cyber-attacks. In the event that a cyber event does occur, a business’s cyber liability insurance will generally cover: 

  • Lost or damaged data: any costs associated with the recovery, repair, or reinstatement of data related to the business or its clients. This can include restoring data and recovering personal identities of customers. 
  • Lost income: any income that is lost due to the attack and the shutdown of certain technological services. The estimated income for the period of the shutdown will be covered based on projected income from prior time periods. 
  • Expenses: some cyber insurance plans cover additional expenses incurred that relate to the shutdown of services.  
  • Notification of customers: any expenses incurred by notifying customers of data breaches, as often required by law. 
  • Reputation damage and management: some cyber insurance plans cover expenses incurred via public relations, marketing and other reputation-management measures taken by the company. 
  • Extortion: if someone steals data and demands a ransom for it, cyber liability insurance can cover the cost of the ransom. 
  • Lawsuits: legal fees and settlements can be covered due to lawsuits brought on by affected customers. 

Cyber liability insurance generally does not cover physical damage to property, even if it is tech-related (i.e. servers, computers, etc.). It also does not cover mistakes or omissions made by your employees, which are usually covered under professional liability insurance. 

Obtain Cyber Liability Insurance in Minnesota

If you are a Minnesota business in need of cyber liability insurance, contact the commercial insurance experts at The Patrick J. Thomas Agency. Our experienced team can help you create a plan that is right for your business. Contact us today.