Cyber Liability Insurance (CLI) covers the financial loss that results from cyber events such as data breaches. However, cyber liability is not typically included within general liability insurance and must be purchased separately. Also, each company offering a policy has different coverage options available and exclusions included. 

Why Invest in Cyber Liability Insurance? 

Experts estimate that the damage inflicted by cybercrimes will add up to about $6 trillion globally in 2021. 

That’s higher than the GDP of the world’s third-largest economy, Japan, which sits at $5.38 trillion. 

cyber security

 These statistics stress why SMBs in particular must have cyber liability insurancE

  1. Over 40% of cyberattacks target small businesses. 
  2. Over 60% of SMBs have experienced a cyberattack in the past 12 months.
  3. Over 45% of SMBs say that their processes are ineffective at mitigating attacks.

Having cyber liability insurance could be the difference between your business sinking or staying afloat after a security incident.

Without cyber liability insurance, the various expenses you might have to bear after an incident could financially harm your business in the short term or, in the worst case, result in permanent closure.

Here are a few expenses that a business would have to manage following a severe data breach incident:

  • Cost of downtime
  • Cost of investigation
  • Cost of recovering data
  • Cost of legal procedures
  • Cost of notifying stakeholders about the incident
  • Cost of restoring the personal identities of those affected
  • Good cyber liability insurance would usually cover these expenses. But always remember that before you commit to a policy, you must get clarity from your insurer about what they do and do not cover.

Does your business need it?

Any venture with cyber exposure must consider having cyber liability insurance. However, if your business handles or stores sensitive information online, such as electronic protected health information (ePHI) or personally identifiable information (PII), cyber liability insurance should be your top priority. 

Book A Tech Discovery Audit

Are you ready for a Technology Partner? Fill out the Get Started Form and we will get in touch with you.

    Simplicity is about subtracting the obvious and adding the meaningful.
    — John Maeda

    What SkySail Partners say:

    We have been working with SkySail Technologies for 8 years now and they have been great. We rely on them for everything IT Service based, from software, phones, website to security and advice. The SkySail team is very responsive to our needs and have been a trustworthy IT partner we have come to rely on.

    Dave Miles

    Montgomery Miles & Stone

    SkySail Technologies manages and monitors our entire network and provides our servers for 45+ users. We rely on SkySail for security and making sure our distribution system (team) communicates with the operational team both seamlessly and efficiently. First hand, we have received great service from our Tech, Darren.

    Stan Walt

    Chances Kelowna

    I have worked with Darren since 1997 in the capacity of him organizing and working with my computer systems, arranging new machinery and problem solving. I have always found his service exemplary and his knowledge is beyond reproach. I am excited to work within the new framework with SkySail Technologies LTD.

    Anne Nikiforuk

    OIS Financial LTD