Cyber Liability Insurance Explained: What Does It Cover?

How Common Are Cyberattacks & What Are the Costs?

0:02 Did you know nearly half of small and medium-sized businesses have already experienced a cyber-attack? And here's the part that catches owners off guard. It's not just the attack that hurts. It's the bill that follows. A single incident could be expensive enough to put a small business under. The good news, you can defend against it on two fronts.

Defense #1: Your Cybersecurity Plan

0:25 Defense number one is a cyber security plan. This is your prevention layer, and it matters whether you've got five employees or 50. If your business stores customer records, financial details, or payroll information online, you're holding exactly what attackers want. Employee training, strong passwords, multifactor authentication, and a response plan all lower your risk. But here's the hard truth. Even a great plan can't stop every attack, which is why you need a second layer.

Defense #2: What Cyber Liability Insurance Is

0:59 Defense number two is cyber liability insurance. It's financial protection that kicks in after certain cyber incidents. And here's what surprises people. It's separate from your general liability policy. Most standard business insurance won't touch the costs of a data breach. This coverage is built for that gap.

What Cyber Insurance Covers

1:22 So, what does it actually cover? Things like data breach response, forensic investigation, legal fees, customer notification, lost income while you're down, plus ransomware and crisis support. This is where that expensive bill gets absorbed instead of landing on you. And some customers and clients may even require cyber insurance for small businesses before they'll work with you.

How the Two Layers Work Together

1:49 Think of it this way. Your cyber security plan keeps the attack from landing. Your insurance keeps you standing if it does.

How Paychex Can Help

1:59 With Paychex Cyber Security Insurance, that's exactly what you get. If an incident hits, you get expert claims assistance walking you through every step. 24/7 crisis management with legal and PR support and forensic help to investigate the breach.

2:18 Coverage can be approved within 24 hours, so you're protected fast.

2:24 A cyber-attack might be unpredictable, but how you prepare for it doesn't have to be.

Wrap Up

2:30 More resources are linked below to help you build both layers of defense.

2:35 And don't forget to subscribe for more guidance on running and protecting your business.