Cyber Security Insurance

Protect your small business from digital threats with the right cyber security insurance—fast. Whether you handle sensitive customer data or rely on technology to run your operations, cyber security insurance – also known as cyber risk insurance or cyber liability insurance – helps cover your business for losses related to data breaches, cyberattacks, and other digital threats. Get a cyber insurance quote online in minutes to reduce your exposure and keep your business running smoothly.

Get a free, fast quote online in minutes to see how affordable cyber protection can be.

Nearly every business today uses technology to get the job done. This means most businesses are vulnerable to cyber incidents like hacks, data breaches, phishing attempts and more.

Every year, hackers become bolder and engineer new ways to get to your data – and your money. Small business owners must take control of their cyber security and information risks to protect themselves and one of their most valuable assets – their data.

If your business maintains a website, accepts credit card payments, or collects and stores customer data – like names, addresses, email addresses, phone numbers, or Social Security numbers, you at risk for a security breach or cyber attack. Even if the stolen data is never exploited, you could be responsible for notifying affected parties and providing credit monitoring services. You may also suffer financial losses from phishing scams or ransomware attacks.

Small companies, startups, and individual proprietors in industries like law, accounting, real estate, beauty services, retail, and food service are all vulnerable to cyber threats. Whether you’re a solo CPA or run a growing restaurant group, cyber insurance can help protect your business from the cost and fallout of a data breach.

Today’s business technology opens up a world of possibilities but also raises critical data security concerns. Threats of data breaches and computer hacks are real for all businesses. According to the latest Hiscox Cyber Readiness Report, it is more likely than not that a small-to-medium sized U.S. company will suffer at least one cyber attack a year.

Hiscox cyber liability insurance may cover the costs of a variety of cyber incidents. Some of these are listed below.

• Data breach response: Covers the cost of investigating a data breach, notifying affected individuals, providing credit monitoring, and managing PR and crisis communications.
• Cyber extortion and ransomware: Includes costs Includes costs to respond to extortion threats and make ransom payments when systems or data are held hostage. This is essential coverage given the rise in ransomware attacks and crypto-based ransom demands.
• Cyber crime protection: This optional coverage enhancement may cover financial losses from social engineering, reverse social engineering, and fraudulent funds transfer. These crimes often involve impersonation of employees, vendors, or clients to trick your business into sending money or data to unauthorized parties.
• Business interruption from cyber events: Covers lost income and operational disruption caused by hacking, viruses, denial-of-service attacks, or other tech failures that bring your business to a halt.
• Digital data recovery: Pays to recover or restore lost, corrupted, or destroyed digital files and software—assets that may not be physically tangible but are vital to your operations.
• Privacy liability: Covers legal costs and settlements from claims tied to mishandling sensitive personal or corporate information. This may also include regulatory investigations and fines related to data privacy laws, excluding biometric data.
• Media liability: This optional upgrade may cover claims arising from your online content, such as copyright infringement, libel, defamation, or advertising injury across websites, blogs, social media, or digital ads.

This information is provided to assist you in understanding the coverage we offer and does not modify the terms and conditions of any insurance policy, nor does it imply that any claim is covered. Coverage is subject to underwriting, terms, conditions, and limits of the policy.

We want Hiscox customers to fully understand what they are buying. Cyber liability insurance offers protection from many information security risks – but like any policy, it doesn’t cover everything. Exclusions typically include:

• Criminal proceedings: Coverage excludes criminal investigations, indictments, or prosecutions.
• Unauthorized funds transfer: Unless covered under the cyber crime add-on, financial losses from stolen or misdirected funds are excluded.
• Utility failures: Power, water, and other infrastructure outages aren’t covered.
• Intentional misconduct: Fraud or knowingly wrongful acts committed by you or your employees are not insured.
• Known prior incidents: Claims based on events you were aware of before your policy started are not covered.
• Uncontrolled subsidiaries: Cyber incidents in businesses you don’t majority-own or control are excluded.
• Third-party system failures: Business interruptions caused by tech failures in vendors' or third parties’ systems are excluded—unless you’ve added dependent system failure coverage.

This information is provided to assist you in understanding the coverage we offer and does not modify the terms and conditions of any insurance policy, nor does it imply that any claim is covered. Coverage is subject to underwriting, terms, conditions, and limits of the policy.

Cyber incidents aren’t just theoretical. Here are two real-world examples of how cyber liability coverage can help protect small companies and startups from major financial and reputational losses.

Phishing email leads to ransomware at a retail business

A retail store’s employee clicked a link in a phishing email, unknowingly installing ransomware that froze the entire point-of-sale system. Sales halted for days. Cyber coverage helped the company recover quickly by covering the cost of restoring operations, and lost revenue.

Data breach liability at a small media agency

A boutique marketing agency failed to update its system’s security software. Hackers accessed sensitive client data, including ad budgets and customer lists. The agency faced lawsuits and regulatory action. Cyber liability insurance helped pay for notification costs, legal fees, and client indemnification.

To be fully protected, your business may need additional types of insurance coverage as well. Learn more about general liability insurance and professional liability insurance coverage. If you're not sure what you need, you can find out in 20 seconds.