Gulfshore Insurance > Gulfshore Blog > Cyber > What Does a Cyber Liability Policy Cover?

Commercial Lines Cyber Liability CoverageLike many businesses, your company probably uses computers to send, receive, or store electronic data. Such data might include sales projections, tax records, and other information owned by your business. If the data is lost, stolen, or damaged due to a security breach, it could be very costly to replace or restore. Your computer system might also contain sensitive data that belongs to other parties such as clients, employees, and vendors. If the data is lost or compromised by a hacker, the owners might sue your company for damages. You can protect your business against the costs associated with data breaches by purchasing a cyber liability policy.

What Cyber Insurance Covers
Generally, cyber insurance is designed to protect your company from these primary risks through four distinct insuring agreements: network security, privacy, interruption to your business, and media liability. Below you will find an explanation of each and what specific cyber risks it covers.

Network Security
This aspect of cyber insurance covers your business in the event of a network security failure; which can include a data breach, malware infection, cyber extortion demand, ransomware, or business email compromise. Network security coverage includes first-party costs––expenses that you incur directly as a result of the cyber incident, including:

  • Legal expenses
  • IT forensics
  • Negotiation and payment of a ransomware demand
  • Data restoration
  • Breach notification to consumers
  • Credit monitoring and identity restoration


Privacy Liability
Privacy Liability coverage protects your company from those liabilities arising out of a cyber incident or privacy law violations. These third-party costs can arise, for example, from liabilities required in a contractual obligation, all the way to regulatory investigations by governments and law enforcement. An example would be defending your organization from consumer class action litigation and funding a potential settlement in the event of a cyber incident or data breach.

Network Business Interruption
Network business interruption coverage provides a solution for companies that face an operational cyber risk. When your network, or the network of a provider that you rely on to operate, goes down due to an incident, you can recover lost profits, fixed expenses, and extra costs incurred during the time your business was impacted. This includes loss arising from:

  • Security failures, like a third-party hack
  • System failures, such as a failed software patch or human error


Media Liability
This provides coverage for intellectual property infringement, other than patent infringement, resulting from the advertising of your services. It often applies to both your online advertising, including social media posts, as well as printed advertising.

At Gulfshore Insurance, we understand the complexity of cyber policies. Regardless of your business’ size or industry, we have a cyber insurance solution to fit your needs.

Jon White is Client Advisor at Gulfshore Insurance specializing in community and condominium associations. Jon works with a wide range of business clients to deliver strategic risk analysis and guidance. Comments and questions are welcome at jwhite@gulfshoreinsurance.com

Gulfshore Insurance is a Naples, Florida based insurance agency specializing in business insurance including liability insurance, property insurance, workers compensation insurance, vehicle insurance, business income interruption insurance, cyber insurance, commercial umbrella insurance, and more. Our insurance and risk management advisors are industry specialists for condominium associations, golf and country clubs, oil and petroleum marketers, construction, landscaping, churches and non-profits, and work comp. Navigating insurance requires an experienced and trusted insurance agent who understands your business risks and exposures. Gulfshore Insurance services Naples, North Naples, Marco Island, Bonita Springs, Fort Myers, Sarasota, Lido Beach, Longboat Key, Bradenton Beach, and Southwest Florida. We have office locations in Naples, Fort Myers, Fort Lauderdale, and Sarasota.