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Cyber Insurance vs. General Liability Insurance: What’s the difference, and why does it matter?

Cyber Insurance

As cyber threats become increasingly prevalent, businesses are looking for ways to protect themselves against potential data breaches and cyberattacks. Two common types of insurance that businesses may consider are cyber insurance and general liability insurance. While both types of insurance provide protection, they cover different types of risks. In this article, we'll take a closer look at the difference between cyber insurance and general liability insurance and why it's important for businesses to understand the distinction between the two.


General Liability Insurance

General liability insurance covers businesses against claims of bodily injury, property damage, and advertising injury. This type of insurance is typically required by law and intended to protect businesses against legal liability for accidents that may occur on their property or as a result of their operations.

General liability insurance may cover a wide range of incidents, such as slip-and-fall accidents, property damage caused by your employees, and advertising injuries, such as libel or slander. However, it typically does not cover losses related to cyberattacks.


Cyber Insurance

Cyber insurance, on the other hand, is specifically designed to protect businesses against losses related to cyberattacks. Coverage can include a wide range of incidents, from data breaches to cyber extortion to business interruption caused by a cyber incident.

Cyber insurance policies may also cover a variety of expenses, such as forensic investigations, legal fees, notification costs, credit monitoring, and public relations expenses. Some policies also provide coverage for loss of income or extra expenses incurred as a result of a cyberattack.


The Difference Between Cyber Insurance and General Liability Insurance

As emphasized in the descriptions above, the main difference between cyber insurance and general liability insurance is the type of incidents that they cover.


Why Does it Matter?

As cyber threats continue to grow in frequency and sophistication, it is becoming increasingly important for businesses to protect themselves against cyberattacks. While general liability insurance is an important form of protection for businesses, it is not sufficient to cover losses related to cyberattacks. Cyber insurance can provide an added layer specifically-designed protection.

By understanding these distinctions, businesses can better protect themselves against a wide range of threats. With the right insurance coverage in place, businesses can focus on what they do best, knowing that they are protected against the unexpected.

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