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Updated: Apr 13

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Contractors wear many hats, come from many different backgrounds, and could run their businesses in a multitude of ways. Maybe you’re the most tech savvy person you know. Maybe you prefer a paper trail. But did you know that when it comes to cyber attacks, everyone is at risk? So what happens if a shifty cyber criminal shuts you down? It depends on the protection you have stacked up against them.

Why Cyber Liability Insurance?

Also referred to as cyber security insurance or cyber risk insurance, this coverage is invaluable in today’s hyper-connected world. That’s because cyber criminals don’t just pick on tech-focused companies. They can target any weak link in a long chain of vendors, suppliers, or other third parties your business is connected to in the digital realm. Smart devices connected to your office network might not have robust security, or a payment processing program could become infected with malware. Any part of your business that is accessed or operated online is vulnerable.

Remember, hackers also don’t just go for the big fish–oftentimes they prefer to target small companies because they know that these folks assume they aren’t a target. Cyber criminals know that if small businesses don’t take the threat seriously, they’ll leave back doors open and make for an easy hack. Less work for them, more headache for you. And companies without cyber liability protection could be more likely to pay a high ransom to get their data back. How to know if your business could benefit from cyber liability insurance? Ask yourself these questions:

  • Do I use a laptop, tablet, smartphone or other internet-connected device to do business?

  • Do I ever use my mobile device while I’m away from the office or at a client’s home or office?

  • Does my business accept credit card payments from clients?

  • Are client payments made using a device that’s connected to a mobile device (phone, tablet, etc.)?

  • Do I store personally identifiable client information (name, address, payments, etc.) digitally?

  • Does my company handle work for large commercial clients?

  • Do I store sensitive company or employee data digitally?

  • Do I use equipment that relies on wireless or remote operating systems?

  • Are company vehicles wirelessly connected?

  • Do we handle medical coverage or issue parking passes to employees?

  • Do employees use an internal email system?

If you answered “yes” to any of these queries, it’s time to get serious about cyber liability insurance. From easily accessible drivers’ license, social security, or credit card numbers to being exposed to unsecure networks, the risks of doing business in the digital era just don’t quit. All it takes is one phony email with a malicious link to wreak havoc on your life’s work. Such high risk demands even stronger protection. Besides looking out for yourself, your company, clients, and employees, having a robust defense against cybercrime can help you to win over larger commercial clients when bidding on jobs. What Does Cyber Liability Insurance Cover? Now that your head is spinning with all the ways that bad actors could reach in and grab your valuable data, let’s come back down to earth and get into the solid protection that a cyber liability policy offers. First-party coverage is a broad category of help for your business to remedy the aftereffects of a data breach. First party coverage can include:

  • Investigative services/forensics

  • Business interruption coverage

  • Data/wire transfer recovery

  • Ransomware negotiations

  • Breach response and notifications

  • Fielding customer concerns

  • Reputation restoration

  • Public relations expertise

  • Legal expenses

On the other hand, third-party coverage offers robust protection to your company’s customers, partners, vendors, and others who might have been affected by a cyber crime. Third-party coverage can include:

  • Legal fees

  • Settlement costs

  • Credit monitoring

On the fateful day when a cyber attack does take your company down, the services a strong cyber liability policy can offer could mean your business’s survival. Without expert help, 60% of small businesses close up shop within six months of a data breach. That’s because remediation is expensive and can take time to resolve. During that time, your business could be at a standstill. Without revenue coming in, with so many costs going out, and after a serious hit to your company’s reputation, it’s easy to see how a cyberattack could be too much for some businesses to bear on their own.

Beyond Cyber Liability

We’ve established that cyber liability insurance is vital to every modern business. But we both know that there are plenty of other risks you face everyday that this policy won’t cover. We’re talking about general liability, workers compensation, errors and omissions, and commercial auto. They’re worth looking into, because anything you do more than the average person can quickly present a risk. And every risk is worth covering.

Work With an Insurance Agency Who Gets You

Contractors by Zinc is just one of the family of brands that make up Zinc Insurance, and our aim is to use our experience to ward off risk at every turn. As a small business, we know what you’re up against, and what it takes to operate safely in the face of risk. We’re your neighborhood agency and we’re in the best position to help. Get in touch with us today to learn more about who we cover and get your free, personalized quote.


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This blog post does not provide insurance advice and is intended for information purposes only. It is not a substitute for professional insurance advice from a licensed representative. Never ignore professional insurance advice because of something you have read in this blog post. Contact your licensed representative if you have any questions about your insurance policy.

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