What Is Cyber Insurance?

Cyber insurance, also known as cyber liability insurance, helps protect businesses from computer, network or technology-related risks, including:

Network interruptions

Data breaches

Lawsuits

Malware and ransomware cyberattacks

Extortion and phishing attacks

To protect your business from the devastating financial consequences of a cyber event, many business owners add cyber insurance coverage to their policy.

The Hartford offers cyber insurance coverage tailored to your business’ needs. We can help you craft a plan to prevent and control cyber-related incidents. Policyholders can access our 24/7 Cyber Center for easy-to-understand cybersecurity resources, including tools, training and best practices such as:

Security awareness training

Data privacy and cybersecurity attorney consultation

Third-party vendor contract review

Cyber advisories

Exclusive webinars and more

Why Do Businesses Need Cyber Insurance?

The consequences of a cyber incident can be just as serious as an event like theft or a fire. Cyber insurance can help you respond quickly after a data breach or cyber event. This coverage can help protect your business if you:

Use the internet in your business operations

Maintain a website

Store private customer data

Accept payments digitally

What Does Cyber Insurance Cover?

It’s always important to know what business insurance covers and which cyber endorsements are available. Cyber insurance helps your business respond to cyber events, such as breaches of your company’s data, ransomware attacks, cybercrime, compromised business emails, network intrusions or computer viruses.

Cyber insurance can help your business if:

An employee clicked on a malware infected email attachment, leading to a ransomware attack.
A compromised email caused your business to electronically send funds to a fraudulent account.
Human error during system upgrades caused your company’s network to freeze.
A hacker gained unauthorized access to your network and your company’s data.

The Hartford’s Cyber Insurance may provide coverage for these expenses after a cyber event:

Incident response expense services, including legal costs, forensic investigation costs and public relations costs for reputational damage.
Costs to respond to a cyber extortion threat, including extortion payments and negotiations.
Costs to replace or restore the company’s data, damaged computer system or network.
Lost income due to a cyber event or network outage.
Costs to notify customers who have been affected by a data breach.
Coverage related to a regulatory inquiry, in addition to regulatory fines and defense.
24/7 cyber incident hotline to help after a cyberattack.
Defense expenses for data privacy and network security liability lawsuits.

What Is Not Covered By Cyber Liability Insurance and Data Breach Coverage?

It’s important to know these insurance policies don’t cover every type of claim. You may need other types of business insurance to create a comprehensive protection plan, such as:

General liability insurance to help cover claims your business caused property damage or bodily injury.
Commercial property insurance to help protect your business’ owned or rented physical location and equipment.
Employment practices liability insurance to help cover employee claims of harassment, discrimination or wrongful termination.
Professional liability insurance to help cover claims of mistakes or omissions in your professional business services. Technology professional liability insurance is available for businesses that provide technology services or products.

How Much Does Cyber Insurance Cost?

Different factors can impact your business insurance cost. How much you pay for cyber insurance can vary, depending on:

Your business operations: Businesses operating in industries that are at an increased threat from bad actors may require more comprehensive coverage.
The size of your business and revenue: Larger companies with more employees, more assets, more customers and more sensitive data may need more coverage or higher limits, which can affect your cost.
Your coverage and limits: Cyber insurance coverage can be tailored to your business’ specific needs, which can impact the cost of the policy. Higher limits and more supplemental coverage mean higher premiums, but they also provide increased protection from cyber incidents.

The Hartford’s Cyber Insurance Solutions

Added Coverage to a Business Owner’s Policy (BOP)

For businesses with non-complex cyber risks, you can add cyber coverage, such as Data Breach and Cyber Virus and Malware, to your Business Owner’s Policy by getting a BOP Insurance quote or calling 855-829-1683 today.

CyberChoice First Response

For non- technology businesses with more complex cyber risks, our stand-alone Cyber Liability insurance, which is called CyberChoice First Response, offers even more protection than endorsed cyber coverage alone. This coverage triggers incident response actions immediately, helping you quickly get your business back up and running. You’ll also have access to our 24/7 cyber claims hotline, where our specialists can help guide you through responding to a breach and provide you with risk mitigation programs to train your employees to avoid future cyber risks. To learn more, find a local agent today.

FailSafe Technology Errors and Omissions

For businesses in the technology industry with more complex cyber risks, such as those who manage a network and/or website, or businesses with a lot of sensitive data, our technology errors and omissions insurance, known as FailSafe Technology Errors and Omissions, includes both professional liability coverage and coverage for data privacy and network security.

This coverage helps protect your technology business from the financial and legal consequences of: