Cyber Liability Insurance Guide

Cyber Insurance, Cyber Liability, Cyber Security, Cyber Crime, Malware, Hackers, attacks are a large problem in our society.  They can greatly affect businesses’ daily operations, and leave both them and their customers at risk. Attackers can not only tamper with financial operations, but also steal or expose customers’ personal information and companies’ confidential data.

Aside from Distributed Denial of Service (DDoS) attacks to slow down performance speeds or completely crash a site, other strategies can be used by hackers.  For instance, malware can be used to infect the host system and gain access to its data. And, it can come in many forms. One form is keylogger malware that tracks the data users input into a system. Moreover, there are Trojan viruses that allow hackers to gain access to a system.

The fervor around the Facebook data-sharing scandal has the potential to be out-shadowed by the recent changes to federal regulations on gambling. That is to say, we are going to see an increase in domestic gambling websites. These may collect personal information, financial figures, and tax reporting data. The scope of cyber crime is already huge, but we may have only seen a glimpse of its ability.   

Impact on Small Businesses:

Any business that handles sensitive data can be at risk for cyber attacks not just large companies. states that cyber criminals
are actually interested in attacking small businesses. This is because they accept credit cards for payments, store customer information, often operate business online or in the cloud, and are less likely to have a strong defense against hackers.  According to, a survey conducted by the Ponemon Institute found that more than 61% of small businesses within the U.S. in 2017 had had a data breach. In addition, the site stated that 60% of small companies go out of business within 6 months of a data breach, largely due to their adverse financial effects.

Cyber Liability FAQs:

What security risks could my business be vulnerable to?

  1. Harmful employees that have knowledge of networks or access to them.
  2. Employees who are unaware of safe technological practices (e.g., use weak passwords, visit websites that aren’t authorized, or open links and attachments from potentially unsafe sources).
  3. The use of mobile phones and personal devices to perform business operations.
  4. Third parties gaining access to data through cloud servers.
  5. Devices with software or firmware that are unpatched or unpatchable, allowing for security vulnerabilities.
  6. The use of third-party service providers who maintain parts of a business’ system, but don’t use security-best practices. As a result, they do not ensure that the system doesn’t get hacked through default password or malware from the Internet.

What kinds of costs could a cyber attack incur?

  • Alerts to customers informing them of a privacy breach
  • Public relations to restore brand reputation
  • Credit monitoring expenses for clients
  • Paid studies into compromised data
  • Loss of income
  • Recovery of network infrastructure
  • Litigation expenses
  • Regulatory fines/penalties

How steep could the costs of a cyber attack be without Cyber Liability Insurance coverage?

Studies have shown that the average cost for each record breached is around $190-$200. Consequently, large-scale security breaches are very expensive. Ed Winslow, owner of NicheQuest and expert on cyber exposure, commented on the matter. He says he often sees clients who wrongly believe their antivirus software is enough to protect them. As a result, they end up paying thousands of dollars in the aftermath of a cyber crime incident. 

Cyber liability is an exhaustive topic.  The Daigle & Travers staff is well-versed in the potential exposures for individuals and businesses. We can advise you on what insurance policies can protect you.


Daigle & Travers is based in Darien, located between Norwalk and Stamford. We serve Fairfield County, Westchester County, Long Island, and all of Rhode Island.

Daigle and Travers will provide you with the right coverage to make sure your investments are safe during a disaster. We will give you the information and options you need to make the best choice of insurance company and policy. If you are in need of Cyber Liability Insurance, give us a call today at (203)-655-6974.


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