What is "cyber liability insurance" designed to cover?

Cyber liability insurance is specifically designed to address risks associated with the use of technology and data. This type of insurance provides coverage for claims resulting from data breaches, online fraud, and other cyber incidents that can lead to the exposure of sensitive information. Businesses today are increasingly vulnerable to cyber threats, and cyber liability insurance helps protect them from financial losses related to these events, including legal fees, notification costs, and potential damages to affected customers.

This coverage is crucial because traditional insurance policies, such as general liability insurance, typically do not extend to issues stemming from technology-related risks, such as unauthorized access to data or cyberattacks. Cyber liability insurance fills this gap, providing tailored protection that reflects the nature of modern business risks.