How Much Does Cyber Liability Insurance Cost?

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As we enter a new age of cyberattacks, it is more important than ever to have cyber liability insurance. Cyber liability insurance is coverage that you can use in the event that you are sued or held liable for damages as a result of a cyberattack. This blog post will explore the cost of cyber liability insurance and help you decide if it’s the right coverage for you.

What is cyber liability insurance?

Cyber liability insurance (CLI) is a type of coverage that businesses can purchase to protect themselves from legal claims that may be made because of the company’s online activities. CLI policies typically cover financial losses that may result from defamation, invasion of privacy, or economic damages caused by computer hacking or data breaches.

A key component of a CLI policy is the deductible. This amount represents the percentage of losses that the policy will cover before it starts paying out benefits. The deductible is also a key factor in determining the cost of a CLI policy. Policies with higher deductibles are generally more expensive than those with lower deductibles, but they may offer greater protection against financial losses caused by cyberattacks.

Another important consideration when purchasing a CLI policy is the coverage limit. This limit represents the maximum amount that the insurer will pay in case of a liability claim. Coverage limits vary based on the type of business and its online activity, but they typically range from $1 million to $5 million.

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What are the different types of coverage?

Cyber liability insurance is a type of coverage that provides protection for individuals and businesses from legal action arising from online activities (such as hacking, cyberattacks, and defamation). There are three main types of coverage: general liability, product liability, and advertising/trade-mark.

General liability insurance covers you if someone sues you based on any legal claim (e.g., negligence, intentional Torts (actions), or contract disputes), regardless of the nature of the online activity. Product liability insurance covers companies when their products are involved in lawsuits. Advertising/trade-mark insurance protects companies from losing business because their trademarks or ads have been used without their permission.

All three types of cyber liability insurance have limits on how much coverage they provide. General liability coverage typically has a $500,000 per occurrence limit, while product liability coverage can have a limit up to $1 million per occurrence. Advertising/trade-mark insurance has no limit on the amount of coverage that is available.

How much does cyber liability insurance cost?

Cyber liability insurance is a type of insurance that helps protect businesses from potential lawsuits related to cyber incidents. Policies typically cover damages resulting from computer hacking attacks, data breaches, and other online infractions. The cost of cyber liability insurance varies depending on the coverage you need and the size of your business. A comprehensive policy may cost anywhere from $5,000 to $500,000 per occurrence. In some cases, you may be able to get coverage for just $10,000 per incident.