Cyber liability insurance covers the cost for a business to recover from a data breach, virus, or other cyber attack. It also covers legal claims resulting from the breach. Any business that stores sensitive data in the cloud or on an electronic device should have cyber liability insurance. Without big technology departments and IT staff, small businesses are most likely to need cyber liability insurance. This type of small business insurance will help you respond effectively to a cyber breach, cover your costs, and quickly move on.
The short answer to that question is: Everyone. Every type of commercial entity – meaning municipalities, non-profit organizations, educational institutions, and corporations – needs cyber insurance if they collect, process or store employees’ or customers’ personal or financial data, or if they have proprietary intellectual property.
Possession of this information makes these entities targets, pure and simple. You see the metrics on how often attacks are directed toward your own company. All it takes is one successful attack to cause a costly data breach.