Cyber Liability Insurance for Small Business

Protect Your Data, Your Clients, and Your Bottom Line

Cyber threats aren’t just a big business problem. From data breaches to ransomware, small businesses face growing risks every day. With the right cyber liability insurance, you can protect your operations, meet compliance requirements, and recover quickly after an attack.

At Heffernan Insurance Brokers, we help small businesses across industries find tailored cyber insurance solutions, so a single breach doesn’t become a business-ending event.

What Is Cyber Liability Insurance?

Cyber liability insurance protects your business from the financial consequences of cyber incidents such as hacking, ransomware, data breaches, and business email compromise. It covers both:

• First-party costs (your company’s response and recovery expenses)
• Third-party liabilities (claims from clients, partners, or regulators)

Also known as:

• Cyber security insurance
• Network security and privacy liability insurance
• Cyber risk liability insurance
• Data breach liability insurance

This coverage helps keep your business compliant with state and federal data protection laws—and operational after a cyber event.

Why Small Businesses Need Cyber Coverage

Cyber criminals increasingly target small businesses because of weaker security and valuable customer data. If your business:

• Stores personal or payment data
• Operates in the cloud
• Accepts online payments
• Uses email or web-based platforms
• Maintains an e-commerce site

Then cyber coverage insurance isn’t optional—it’s essential.

From CPA firms and healthcare clinics to retail shops and SaaS startups, every business with a digital footprint needs cyber protection.

What Does Cyber Liability Insurance Cover?

Cyber liability policies vary by provider, but typically include:

First-Party Coverage

• Data recovery and system restoration
• Business interruption and lost revenue
• Ransomware and extortion payments
• PR and crisis management services
• Breach notification and credit monitoring
• Digital forensic investigations

Third-Party Liability Coverage

• Privacy liability for exposed personal data
• Network security liability (e.g., malware spread)
• Regulatory fines and legal defense costs
• Media liability related to online content or defamation

Need comprehensive protection? Ask about cyber and privacy liability insurance bundles.

What Isn’t Covered by Cyber Insurance?

Cyber liability insurance generally excludes:

• Physical property damage or bodily injury
• Reputational loss beyond PR support
• Pre-existing cyber incidents
• Poor cybersecurity hygiene or failure to maintain safeguards
• Fraudulent wire transfers (unless added as an endorsement)

We’ll walk you through cyber liability insurance coverage limits and exclusions, so you’re not caught off guard.

How Much Does Cyber Liability Insurance Cost?

Cyber insurance premiums are based on:

• Your industry and regulatory environment
• Amount and sensitivity of data you store
• Security protocols and risk controls
• Annual revenue and digital exposure
• Prior claims or breach history

Most small businesses pay between $500 and $2,500 per year. High-risk sectors such as finance, healthcare, and legal may pay more.

Heffernan will help you compare quotes and find a cyber liability insurance cost that fits your risk profile and budget.

Get Covered by Top Cyber Insurance Carriers

We work with trusted cyber liability insurance companies that specialize in small business protection. Our carrier partners offer:

• Risk management tools to reduce exposure
• 24/7 incident response and breach support
• Fast, knowledgeable claims handling
• Helping meet evolving compliance standards

You get comprehensive protection—without the guesswork.