Cyber Liability Insurance

Cyber liability insurance covers the costs of responding to a data breach or cyberattack. First-party coverage pays for your own losses — breach response, data restoration, ransomware, customer notification, and lost income — while third-party coverage pays claims from customers or partners whose information was exposed.

It exists because a single attack creates many simultaneous costs that other policies don’t touch. At Rafail Insurance Agency we right-size both sides of the coverage to your data, systems, and revenue, then explain exactly what triggers it and what it pays.

If your business holds customer data, accepts electronic payments, or relies on computers to operate, then yes — you have cyber exposure, regardless of size. Attackers increasingly target small and mid-size businesses because their defenses are weaker and they’re more likely to pay a ransom.

Many owners assume they’re too small to be a target or that their general liability policy covers a breach — it doesn’t. We’ll assess your real exposure honestly and tell you whether, and how much, cyber coverage makes sense for you.

No. General liability covers bodily injury and property damage, not electronic data, breaches, or cyber events. Most GL policies explicitly exclude cyber, which is why a separate cyber liability policy is necessary to cover those losses.

This gap surprises a lot of owners after an incident. We make the boundary clear up front so you’re not relying on a policy that was never designed to respond to a breach.

Premiums depend on your revenue, industry, the volume and sensitivity of data you hold, and the security controls you have in place. Many small businesses can obtain meaningful coverage for a reasonable annual premium, and strong controls like multi-factor authentication can lower the cost.

Because we’re independent, we compare cyber programs across A-rated carriers and match the coverage to your actual risk rather than overselling. We’ll show you the trade-offs between limits, deductibles, and add-ons clearly.

Many cyber policies include coverage for ransomware — the ransom itself where legally permitted, plus the larger costs of restoring data, investigating the breach, and the income lost during downtime. The downtime and recovery costs often exceed the ransom by a wide margin.

Coverage terms vary by carrier, and some require specific security measures to qualify. We review the ransomware provisions carefully so you know exactly what would and wouldn’t be covered before an incident, not after.

Business email compromise (BEC) is a scam where an attacker impersonates an executive or vendor by email to trick an employee into wiring money or sharing data. It’s one of the most common and costly cyber losses, and it often slips past businesses that think they’re too small to target.

Coverage for BEC and social-engineering fraud is available, but it’s frequently a specific endorsement rather than automatic. We make sure your policy actually includes it if wire transfers are part of how you operate.

Carriers reward basic security hygiene: multi-factor authentication, regular backups kept offline, employee phishing training, prompt software updates, and access controls. These measures reduce both your likelihood of a claim and, often, your premium.

We’ll walk you through the controls most carriers now expect and how they affect both eligibility and price. Good security and good coverage work together — one makes the other more affordable.

It’s free and carries no obligation. Tell us about your business, your data, and your systems through our contact or appointment form, and we’ll assess your exposure, review any existing policy, and compare cyber programs across A-rated carriers in plain language.

If you already carry adequate cyber coverage, we’ll tell you so. If there’s a gap between your risk and your protection, we’ll show you exactly where — and the decision stays yours.