Are Cyberattacks Covered Under My General Liability Insurance? 

A business must regularly assess and address various risks and exposures, including potential liabilities related to other parties.

Regardless of size or sector, all companies could find themselves being allegedly at fault for the losses and damages of customers, clients, guests or passersby, and lacking adequate loss control measures could prove devastating.

Fortunately, the right combination of liability insurance policies can establish a robust and versatile financial fortress, potentially allowing policyholders to absorb and recover from unexpected incidents.

However, liability insurance coverage can be complicated, and understanding the right types of insurance for various incidents, such as cyberattacks, is necessary.

Is Cyber Coverage Included in General Liability Insurance?

In most cases, no. While general liability insurance is a versatile and integral component of many businesses’ coverage portfolios, these policies should not be relied on to address cyberattacks or data breaches. General liability insurance coverage typically focuses on other parties’ bodily injuries, physical property damage, personal injuries, and reputational harm.

As such, a separate cyber liability insurance policy should be a top priority for most businesses.

How Can My Business’s Insurance Cover Cyberattacks?

As workplaces across all industries become more dependent on technology, relevant risks and exposures must also be reassessed. Given the increasing use of cyberspace and digital solutions, many companies may need to account for significant cyber risk levels.

Phishing scams, malware infections, ransomware attacks and social engineering can all inflict substantial consequences for those without the right insurance.

With this in mind, cyber liability insurance emerges as a valuable investment. These policies can bolster your company’s financial security with multifaceted coverage capable of addressing the aftermath of cyber incidents. While exact policy details may vary, many cyber liability insurance policies can issue payouts to assist with the following:

• Incident response costs—Following a cyberattack, your insurance may help pay for costs related to investigating the incident and notifying affected parties, such as clients or partners whose sensitive information may have been compromised.

• Hiring additional help—After a cyberattack, you may want to enlist the assistance of specialists for damage control. Cyber liability insurance may help pay for hiring IT professionals, crisis management teams, and public relations firms.

• Legal expenses and fines—In many cases, a cyberattack that affects other parties may lead to lawsuits or fines issued by regulatory agencies. Should your business be sued by affected parties due to a cyberattack, your insurance may help pay for related expenses and losses, including attorney fees, settlements and court-ordered judgments.

We’re Here to Help

At Sunstar Insurance of Arkansas, we understand the importance of liability coverage, including for both physical and cyber losses. Contact us today to learn more about your options and to procure suitable policies.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.