Cyber Liability Insurance

Protect your business from cyber attacks, data breaches and online threats

Cyber Liability Insurance helps safeguard your business against the financial, operational and reputational damage caused by cyber incidents — such as ransomware attacks, data breaches, phishing scams and system outages.

Today, even the smallest businesses hold sensitive data and rely on technology. A single incident can result in lost revenue, legal claims, regulatory fines and reputational harm. Cyber insurance provides vital protection.

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What Is Cyber Liability Insurance?

Cyber Liability Insurance protects your business from risks linked to online activity, data handling and network operations. It covers financial losses, legal costs and recovery expenses caused by cyber incidents such as:

Data breaches
Email-based threats
Hacking and malware
Privacy violations
Intellectual property issues

As businesses rely increasingly on digital systems, cyber insurance provides essential protection against the disruption and liability these risks can create.

Who Buys Cyber Liability Insurance?

Cyber risks affect almost every modern business — not just e-commerce or online retailers. If your organisation uses email, stores digital information, relies on computer networks, or publishes content online, you face exposures such as:

Privacy breaches
System downtime
Defamation or copyright complaints
Financial losses due to hacking
Web content liabilities

Cyber cover is especially important for businesses that transact online, store sensitive data or depend on email and connectivity to operate.

Who Needs Cyber Liability Insurance?

Cyber risks affect businesses of all sizes and in every sector — not just online retailers or tech firms. Your organisation is at risk if you:

Sell Products or Services Online (E-Commerce)

Businesses that rely on websites or online transactions, such as:

Retailers & online shops
Travel & booking platforms
Subscription and membership websites

Operate Client-Facing Digital Platforms

Websites or systems that allow users to interact, log in, or exchange information:

Customer portals
Supplier portals
Online forums, booking systems or file downloads

Store Sensitive or Important Data

Businesses handling personal, financial, or confidential information, including:

Professional services (lawyers, accountants, insurers, surveyors)
Public sector organisations
Housing associations
Healthcare, education, and not-for-profits

Publish or Manage Large Volumes of Online Content

Companies that create, publish or host digital content:

Media outlets
Online publishers
News and information platforms

When Should I Consider Cyber Insurance?

Cyber insurance is essential for any business that relies on digital systems, online communications or connected devices. While creating a website or using email may seem simple, the exposures behind them are not. Cyber risks continue to evolve, and even small companies face the same online liabilities as major publishers.

You should consider cyber insurance if your business:

Operates a website, online portal or e-commerce store
Stores customer, employee or supplier data
Uses cloud platforms, software tools or remote access
Sends or receives business emails
Handles payments or financial information
Relies on digital systems to operate day-to-day

Even privately owned companies can face legal, financial and reputational consequences without protection — particularly as new privacy and data protection laws create additional responsibilities.

Why Do I Need Cyber Insurance Cover?

Traditional liability policies rarely cover cyber-related incidents. Many organisations assume their existing insurance protects them against data breaches, system failures or online liabilities — but in reality, these exposures often fall outside standard cover.

Cyber Liability Insurance is designed to fill that gap. It protects your business against events such as:

Data breaches involving customer, employee or commercially sensitive information
Breaches of privacy or confidentiality
Copyright, defamation or intellectual property disputes arising from online content
Malware, ransomware and unauthorised system access
Loss of revenue caused by system interruption following a cyber incident
Claims linked to incorrect or misleading information published online
Regulatory investigations or penalties (where insurable)

A single incident can lead to financial losses, operational disruption, legal action and long-term reputational harm. Cyber insurance provides a structured safety net, ensuring your business has expert support, legal defence and financial protection when a security incident occurs.

What Does Cyber Liability Insurance Cover?

Cyber Liability Insurance protects your business from the financial consequences of cyber attacks, privacy breaches, system failures and mistakes made online.

Data breaches and privacy violations
Defamation, libel, slander or copyright infringement online
Intellectual property disputes related to digital content
Damage to computer systems from viruses, malware or hacking
Business interruption losses after a cyber attack
Ransomware demands or cyber extortion
Legal defence costs and regulatory investigations
PR and crisis management support to protect your reputation

Do You Need Cyber Insurance?

Cyber risks affect every modern business, not just those trading online. If your organisation uses email, stores data, relies on software, or operates any form of digital infrastructure, you are exposed to threats that traditional insurance does not cover.

Do you have a website?

You may be exposed to:

Copyright infringement
Misleading pricing or advertising claims
Libel or slander

Do you store HR or payroll data?

You could face:

Employee privacy breaches
Data Protection Act violations

Do your staff use email or the internet?

Potential risks include:

Virus transmission to third parties
Employee misuse or hacking
Workplace claims (e.g., harassment via email)

Do suppliers access your network?

Risks include:

Malware infecting your systems
Business downtime due to supplier breach

Do you run a blog, forum or interactive website?

Possible exposures:

Defamation
Breach of confidentiality
IP infringements

Do you process customer transactions online or rely heavily on email?

You may be exposed to: Fraud Lost revenue from attacks Breaches of sales or advertising regulations

Do you store customer payment or personal data?

Risks include:

Data Protection Act breaches
Third-party financial loss

Typical Cyber Insurance Claims (Examples)

THIRD-PARTY CLAIMS

Type of Claim	Example Scenario
Claims made against you for internet or email libel	An employee sends a poorly worded email to a supplier containing statements later deemed defamatory. The supplier alleges reputational harm and pursues legal action for damages.
Claims for breaches of intellectual property rights	A staff member uploads product images to your website, not realising they are copyrighted. The rights owner issues a cease-and-desist notice and seeks compensation for unauthorised use.
Privacy breaches or confidential data leakage	A misconfigured cloud folder exposes customer files. Affected individuals submit complaints and legal claims under GDPR for failing to protect their personal data.
Misleading pricing or advertising claims	An e-commerce company mistakenly advertises a high-value product at the wrong price for several hours. Customers demand the price be honoured and file complaints for misleading advertising.
Jurisdictional or regulatory issues	Your website receives traffic globally. A customer in another country claims content on your site breaches local laws and threatens cross-border legal action.
Technology service failures	A consultant provides software integration for a client, but an error results in the client’s system going offline. The client claims for financial losses caused by operational disruption.
Third-party financial loss from malware spread	An infected device inside your business unknowingly forwards malware to a partner organisation, forcing them into costly system restoration. They seek to recover their losses from you.
Breach of the Data Protection Act / UK GDPR	HR staff accidentally email payroll data to the wrong recipient. The ICO investigates and affected employees seek compensation for the privacy breach.

Quotations & Preferred Underwriter

Rowlands & Hames can source a tailored Cyber Liability Insurance quotation on your behalf. We work closely with CFC Underwriting, whose award-winning cyber policy is our preferred wording for most businesses due to its comprehensive cover and specialist cyber expertise.

While CFC is our recommended provider, we also have access to a wide range of alternative underwriters. If another insurer offers a policy better suited to your needs, we will present those options to you.

Information on this page draws on guidance and technical insight provided by CFC Underwriting, and we gratefully acknowledge their support.

Policy limits and exclusions may apply, please see policy wording for full terms and conditions.

Cyber Liability Insurance FAQs

What is cyber liability insurance in simple terms?

Cyber liability insurance helps protect your business if a cyber incident leads to financial loss, legal action, or reputational damage. Typical events include data breaches, hacking, ransomware, accidental data leaks and problems caused by information published on your website or via email.

Is cyber insurance only for online retailers or tech companies?

No. Any organisation that uses email, stores data, runs a website, uses cloud services or relies on IT systems can have cyber exposure. Professional firms, manufacturers, charities, schools, care providers and local businesses can all benefit from cover.

What’s the difference between cyber insurance and professional indemnity insurance?

Professional indemnity insurance covers claims arising from mistakes in your professional advice or services. Cyber insurance focuses on incidents involving data, networks and digital assets – such as hacking, data breaches, ransomware and online defamation. The two covers complement each other rather than overlap.

Does cyber insurance cover GDPR / Data Protection Act breaches?

Policies can help with many of the costs that follow a privacy breach – for example forensic IT investigation, legal advice, notification costs, credit monitoring and certain regulatory investigations. Whether regulatory fines are covered depends on the wording and whether they are legally insurable, so this always needs to be checked in the policy terms.

Will my existing business insurance already include cyber cover?

Most standard business, property or liability policies provide little or no protection for cyber incidents. Some offer limited extensions, but these are often restricted. A dedicated cyber liability policy is designed specifically for data, systems and online risks.

What happens if I suffer a cyber attack and have a policy in place?

You usually contact a 24/7 incident response helpline provided by the insurer. They can arrange specialist IT forensics, legal and PR support straight away and help you manage the breach. Covered costs and any valid third-party claims are then handled under the policy, subject to your limits and excess.

What information do you need to provide a cyber insurance quote?

Insurers typically ask about your sector, turnover, number of records held, type of data, use of remote access or cloud services, and the IT security measures you have in place (back-ups, multi-factor authentication, staff training, etc.). For larger businesses, a short cyber proposal form may be required.

Can I reduce my premium by improving cyber security?

Often yes. Simple controls such as strong passwords, multi-factor authentication, regular back-ups, software patching and staff awareness training not only reduce your risk but can also make your business more attractive to insurers. Some providers offer risk-management tools and discounts for good controls.

Is cyber liability insurance a legal requirement?

No, it isn’t compulsory in the UK. However, many clients, suppliers and contracts now expect a certain level of cyber cover, especially where sensitive data or critical services are involved.

How much cyber cover do I need?

The right limit depends on the size of your business, the volume and sensitivity of data you hold, how reliant you are on your systems and any contractual obligations. We can help you estimate realistic worst-case costs (for example, business interruption, notification, legal and IT expenses) and suggest appropriate options.

Contact the Team

Mike Watkinson Dip CII

Insurance Sectors We Cover

We provide tailored insurance solutions across a wide range of sectors. Each policy is designed around your industry’s specific risks, ensuring you’re fully protected, compliant, and supported by our expert team.