Coverage line
Cyber Liability
Helps pay for costs if your business is hacked or customer data is stolen.
What it typically covers
- Breach response: forensics, notification, and credit monitoring
- Ransomware response and, where insurable, extortion payments
- Liability to customers whose data was exposed
- Business interruption from a covered security event
A claim it answers
An attacker gets into your cloud environment and exfiltrates customer records. You owe notification letters, forensics bills, and answers to angry enterprise customers within days.
Where it fits
Relevant to any company holding customer data or running production systems. Frequently required in enterprise and government contracts.
Common questions
- We run on a major cloud provider. Do we still need cyber insurance?
- Yes. The cloud's shared-responsibility model leaves your code, configuration, and data handling on your side of the line. When customer data you hold is exposed, the claims come to you, not to the cloud provider.
- Does cyber insurance cover a prompt-injection attack or a model leaking data?
- It depends on how the policy defines a security event, and those definitions were written before language models existed. This is exactly the wording we read before a form binds, because an AI-mediated leak that falls outside the definition is an uncovered breach.
- When do contracts start requiring cyber coverage?
- As soon as you touch a customer's data in production. Enterprise data-processing agreements and government contracts commonly set a required limit, often one million dollars or more.
- What does a cyber policy actually pay for after a breach?
- The immediate costs are forensics, legal guidance, customer notification, and credit monitoring. Beyond that, covered policies respond to liability claims from affected customers and business interruption from the event, subject to the carrier's terms.
Hacks, breaches and stolen data.
This page describes a line of coverage in general terms. It is not an offer of insurance and not evidence of coverage. Carrier appetite, policy wording, licensing, and availability govern every quote and every claim.