Cyber Liability Insurance
A ransomware attack or data breach can shut down operations and trigger lawsuits and regulatory scrutiny in the same week. Cyber insurance pays for the response, the recovery and the claims that follow. It is essential for any business that holds personal or health information, which is almost every business.
Reviewed by Nate Feuerman, High Net Worth Insurance Producer at Stonebrook
Last updated
Quick answers
What does cyber insurance cover?
Breach response, forensics, notification, ransomware, lost income from downtime, data restoration, and liability and regulatory claims after a breach.
Does cyber insurance cover HIPAA violations?
Many policies cover privacy liability and regulatory defense for health information breaches, and some cover fines and penalties where insurable.
What do carriers require to write cyber?
Usually multi-factor authentication, secure and tested backups, endpoint protection and employee training.
Does general liability cover a data breach?
No. Data breaches and cyber attacks need a cyber policy.
What cyber insurance covers.
Breach response
Forensic investigators, breach attorneys, notification, call centers and credit monitoring.
Ransomware and extortion
Negotiation, recovery and, where lawful, extortion payments.
Business interruption
Lost income and extra expense while systems are down.
Data restoration
Restoring or recreating damaged data and systems.
Privacy and network liability
Lawsuits from customers, patients, residents and partners after a breach.
Regulatory defense
Investigations and, where insurable, fines and penalties, including HIPAA and state privacy laws.
What carriers will ask about your security.
Good controls are now required to get cyber coverage, and they also lower your price.
| Control | Why it matters |
|---|---|
| Multi-factor authentication | On email, remote access and admin accounts; one of the most common requirements |
| Backups | Offline or immutable, and tested, so you can recover without paying a ransom |
| Endpoint detection and response | Spots and stops attacks on computers and servers |
| Employee training | Phishing is the most common way attackers get in |
| Payment verification | Call-back procedures prevent wire fraud and fake invoices |
Cyber for the industries we know best.
Skilled nursing, senior living and adult day care operators hold protected health information, and a breach can bring HIPAA scrutiny on top of lawsuits and downtime.
Real estate investors and property managers hold tenant applications, bank details and Social Security numbers, and are frequent targets of wire fraud during closings and rent collection.
Social engineering and funds transfer fraud are often sublimited or need to be added. Ask us how your policy handles them.
A broker who knows your business.
Stonebrook is an independent agency. We work with standard, specialty and excess and surplus lines carriers, so we can shop cyber coverage across specialist carriers instead of fitting you into one company’s program.
Since 1982 we have placed commercial programs for businesses and property owners across the country. We read the fine print, flag the exclusions that matter for your operation, and advocate for you at underwriting, at renewal and at claim time.
Coverage that works together.
Most families need more than one policy. Here is how the pieces fit.
Cyber insurance questions, answered.
What does cyber liability insurance cover?
Cyber insurance covers first-party costs like breach response, forensics, notification, ransomware, data restoration and business interruption, and third-party liability for privacy and network security claims and regulatory proceedings after a breach.
Does cyber insurance cover ransomware?
Most cyber policies cover ransomware response, including forensics, negotiation, recovery and lost income. Coverage for extortion payments depends on the policy and the law.
Does cyber insurance cover wire fraud?
Often only if social engineering or funds transfer fraud coverage is included, and it is commonly sublimited. Ask for it specifically.
Do healthcare providers need cyber insurance?
Yes. Healthcare organizations hold protected health information, and a breach can lead to HIPAA investigations, notification costs, lawsuits and downtime.
Why was my cyber application declined or so expensive?
Carriers now require specific controls, especially multi-factor authentication, tested backups and endpoint protection. Strengthening those controls usually improves eligibility and price.
Does a BOP or general liability policy cover cyber?
Generally no. Some BOPs offer a small cyber endorsement, but it rarely replaces a full cyber policy.
Let’s get you protected before an attack, not after.
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