Why Do Businesses Need Cyber Liability Insurance?

March 10, 2018

Cyber Losses are One of the Fastest Growing Business Risks

According Small Business Trends [1] , the risk of loss is significant:

43% of cyber attacks target small business
60% of small companies go out of business within 6 months of a cyber attack

As a small business owner, those two facts alone should be reason enough to that cyber coverage is a “need”. It might be important to know that Cyber Liability is one type of insurance for digital risks. The word “liability” describes coverage that protects the insured from losses to others (third-parties) following a breach of private data for expenses such as

Mounting a legal defense.
Compensating others for damages related to the breach.
Costs to banks for re-issuing compromised customer credit cards.
In some cases regulatory fines and penalties

There are other forms of cyber coverage that will protect the insured (called first-party) for losses they directly incur such as:

Investigation of the cause of the breach.
Costs of communicating the breach to customers.
Offering credit monitoring services to customers.
Cost of repairing the businesses reputation.
Loss of profits
Extra expenses incurred during the time your business is interrupted.

An important thing to know when shopping for cyber insurance is that coverage forms are not standardized. In other words, there is wide variation on the breadth of coverage options available. Some policies are much more liberal, whole others are much more limited in their contract wording. The help of a knowledgeable Independent Insurance Agent would be wise to take advantage of in this arena. Here at the Ryan Agency we can help you better understand the importance of Cyber Liability Insurance and what your options you have when purchasing it. Footnotes [1] CYBER SECURITY STATISTICS - Numbers Small Businesses Need to Know - Small Business Trends

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Auto Rates and Finger Prints: Both are Unique to You!

By Jeff Ryan • April 7, 2026

Factors You Can’t Easily Control These factors are built into your profile, but still play a major role: Your location: Claim trends, traffic, and weather patterns where you principally drive. Your age and driving experience: Especially for younger drivers. Other drivers in your household: Their age and driving history. The vehicle you own: Unique to the Year, Make, Model, and Sub-model’s damageability and cost of parts/labor. These factors significantly influence price differences, but they don’t tell the whole story. Factors You Can Control This is where habits and wise decisions can make a real difference: Your driving habits: Minimizing tickets and accidents can have a direct impact. Your coverage choices: Liability limits, deductibles, and optional coverages can vary widely. Your insurance consistency: Avoiding lapses in coverage. Your annual mileage: How much and how often you drive. Discount opportunities: Bundling, pay-in-full, NYS defensive driving course. Your Insurance Score (Yes—You Can Influence It) Insurance companies use a credit-based insurance score as part of their rating process. While it’s based on financial behaviors, it is not permanent—and it can be improved over time. Simple habits like: Paying bills on time Reducing outstanding debt Avoiding excessive credit inquiries… can positively impact your score—and in turn, your insurance rates. Your insurance score is under your control and a worthy mid to long-term project in and of itself. For more information on what you can do to positively influence your score, see: Great 8 Tip #8 - What's Credit Got to Do with Insurance? How Can I Improve My Auto Insurance Score Why Comparing Rates Doesn’t Work When someone says, “I only pay…” , the uniqueness of their fingerprint is missing. What are their: Deductibles Driving history Insurance score Household profile Coverage limits: what they may be giving up in terms of protection. Price without context can be misleading and discouraging.