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The Invisible Threat: Why Your Business Needs Cyber Liability Insurance

Imagine it's business as usual answering emails, talking with customers, and managing the day-to-day of your business, when you suddenly get a strange email. The sender says they've hacked into your systems and have stolen all of your personal and customer information, demanding you pay a hefty ransom to get it back. As they hold your business hostage, your entire livelihood is at risk. 

This is what's called a cyber attack. In 2022, there were over 480 thousand cyber attacks in the United States. While you might think a cyber attack could only happen to large businesses, like Target or Home Depot, small businesses are even more susceptible. With typically less protection, small businesses could find themselves in the center of a data breach or cyberattack before they know it. What can you do to minimize the risks and impact? Finding a cyber liability insurance policy that protects your business and customers can bring you peace of mind as technology, and hackers, continue to evolve.  

What is Cyber Liability Insurance?

Cyber liability insurance protects your business from cyber attacks, threats, and data breaches. If your databases or systems are hacked or your customer information is stolen, including credit card numbers or social security information, cyber liability insurance can be there to support you as you begin to rebuild your business, communicate with your customers, and repair your reputation.

Types of Risks

Cyber liability insurance covers several risks that your business could be subjected to. This includes internal items or first-party coverage, such as data or identity recovery, or external or third-party coverage, such as customer data retrieval or communications. Cyber liability insurance can help alleviate stress or impacts in the following areas:

Internal/First-Party Coverage:

  • Recovery of stolen information or data
  • Income replacement due to business interruption
  • Identity theft
  • Cyber extortion and fraud
  • Regulatory Fines
  • Investigative services
  • Reputation & Customer communications, including crisis management and public relations


  • Recovery of stolen information or data
  • Customer payments or lawsuit coverage
  • Lawsuit settlements
  • Reputation & Customer communications, including crisis management and public relations
  • Accounting costs

How can you prevent cyber risks?

Last year, three in four companies were at risk for a cyber attack in the United States. In addition, cybercrime will cost business owners and customers over $452 billion this year, and the problems are only increasing. As technology continues to evolve and threats continue to seep in through new, undiscovered avenues, it’s important to take the steps you need to protect your business. In addition to finding the right cyber insurance policy, you can take these additional precautions:

  • Hire an IT security partner
  • Install security software and hardware on company computers
  • Use a cloud to store your company information
  • Secure your Wi-Fi network
  • Limit employee access to data and information
  • Monitor passwords and authentication

Are you ready to protect your business? Contact a Mulling Insurance agent today!


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