Cyber Liability Insurance

What is Cyber Liability Insurance?

With cybercrime rampant, it should come as no surprise that it’s more vital than ever before to invest in proper cyber liability insurance for your business. Cyber liability insurance provides coverage for businesses that collects or sells information online.

The most common cybercrime perpetrated against businesses is data breaches; a cyber-attack where personal information (such as name, address, and payment information) are compromised. Companies that store personal information are liable for all data stored within their electronic database.  

Cyber liability insurance offers a range of policies that provide coverage for data breaches.

What is included in Cyber Liability Insurance?

Cyber liability insurance will provide coverage for the following.

  • Credit monitoring
  • Loss resulting from identity theft
  • Notification costs
  • Penalties and fines
  • Costs associated with defending claims by state regulators

Cyber liability insurance will also provide coverage for: 

  • Cyber extortion
  • Business interruption
  • Cyber fraud
  • Loss of data

What are the benefits of having Cyber Liability Insurance?

Cyber-attacks can be devastating – they interrupt day-to-day business operations, lead to lost profits, and open businesses to potential lawsuits. Cyber liability insurance help to mitigate that threat. Benefits include:

Cyber Extortion Defense

Data Breach Coverage

Loss Reimbursement for Business Interruption

Cyber Extortion Defense

One of the most common forms of cyber-attacks is ransomware, a malicious virus that locks out a victim’s computer in exchange for a financial ransom. Companies affected by ransomware have been known to pay millions of dollars to regain control of systems vital to day to day operation. It’s vital that businesses in the cannabis industry adopt cyber liability coverage to protect themselves from potential ransomware attacks.

Data Breach Coverage

By law, companies are required to report database breaches to affected individuals. Even when the initial situation has been dealt with companies will still be responsible for paying massive fees to enhance their security. Businesses must also contend with legal fees (in the event of lawsuits). Cyber liability insurance provides coverage for all fees associated with a data breach.

Loss Reimbursement for Business Interruption

Cyber-attacks can freeze the day to day operations of a business. This could result in mounting expenses that can put a business in a serious financial bind. The right cyber liability policy may protect your business from lost income until your systems are back up and running.

Tips for Choosing Cyber Liability Insurance for Your Cannabis Business

The cannabis industry is just as vulnerable to cyber-attacks as any other industry. Picking the right cyber liability insurance is vital to protecting day to day operations and keeping the personal data of both your business and your customers safe.

Forensic Support

Simply weathering a cyber-attack isn’t enough. You’ll need to perform an investigation to get to the root of the matter. Depending on your needs try to be on the lookout for cyber liability insurance that offers an in-depth level of support that includes reimbursement for expenses related to forensic investigations and consultation.

Legal Support

No matter how severe a cyber-attack is, you should expect some form of legal backlash. Legal troubles are never cheap, so you’ll want to find cyber liability insurance that can help you cover the costs of lawyers and any other expenses associated with legal matters.

Offers more than just a General Liability Policy

While general liability has its uses, most policies of this nature generally provide coverage for physical assets, but may not include cyber losses. Data is becoming increasingly valuable. It’s vital that you choose the right policy for your business to protect your valuable data.

Get a Cyber Liability Insurance Quote

With cybercrime rampant you’re going to need an insurance policy to protect your business. We can help you with that. Cannabis Connect Insurance passionately serves the cannabis community and our team of professionals will work closely with your business to ensure you find the right coverage.

Our Partnerships


Builder’s Risk, Excess Liability Rates Climbing Fast

INSURANCE RATES are rising rapidly for contractors, particularly for builder’s risk and excess liability policies as the cost of claims continues to increase dramatically.While rates for builder’s risk have been averaging 10 to 20%, pricing for excess liability and...

Fudging Payroll Records Can Lead to Fines, Jail

THE OWNERS of a California flooring installation company allegedly underreported their payroll amounts to workers’ compensation insurers to the tune of $30 million. The men are each facing three felony charges. These are the potential consequences for those who...

New Rules Relax COVID-19 Emergency Standard

CAL/OSHA LAST November issued COVID-19 emergency temporary standards, and now the agency has revised those standards to reflect the reduced risk of infection as more people get vaccinated. The revisions provide respite to many businesses ahead of the planned reopening...

As Workplaces Open, Experts Fear Lawsuit Tsunami

AS MORE Americans return to the workplace, employers are now facedwith the difficult issue of transitioning reluctant staff back as well as complaints and legal action from the most reluctant of workers. Already some returning workers have started to sue their...

Department of Labor Backtracks on New Regulation

PRESIDENT BIDEN’S Labor Department has rescinded a Trump-era rule that would have made it easier for businesses to classify workers as independent contractors instead of employees under the federal Fair Labor Standards Act. In the last month of the Trump...

Bureau Files 2.7% Rate Increase for Sept. 1

THE WORKERS’ Compensation Insurance Rating Bureau of California has recommended that benchmark workers’ comp rates be increased by an average of 2.7%, for policies incepting on or after Sept. 1. The recommendation has been sent to Insurance Commissioner Ricardo Lara,...