Are Cyberattacks Covered Under Commercial General Liability Insurance? 

As businesses become more reliant on technology, concerns about cyberattacks and data breaches are on the rise. Many business owners wonder if their commercial general liability (CGL) insurance will protect them from the financial fallout of a cyber incident. Cormack-Routhier Agency, Inc. is here to clarify what CGL covers and why dedicated cyber liability insurance is increasingly essential.

Understanding Commercial General Liability Insurance

CGL insurance is designed to protect businesses from claims involving third-party bodily injury, property damage, and certain types of personal and advertising injury. For example, if a customer slips and falls on your premises or if your business is accused of causing property damage, your CGL policy may help cover legal costs and settlements.

However, when it comes to cyber risks, such as hacking, ransomware, or data breaches, CGL policies typically have significant limitations. Most standard CGL policies exclude coverage for losses related to electronic data, privacy breaches, or cyberattacks. This means that if your business experiences a cyber incident, your CGL insurance may not provide the protection you expect.

Why Cyber Liability Insurance Matters

Cyber liability insurance is specifically designed to address the unique risks associated with cyber threats. This type of coverage can help with:

• Costs related to data breaches, including notification and credit monitoring for affected individuals
• Legal expenses arising from privacy violations or regulatory investigations
• Business interruption losses due to a cyberattack
• Expenses to restore or recover lost data

For Rhode IslandRhode Island businesses, having cyber liability insurance can be the difference between a manageable incident and a devastating financial loss. As cyber threats continue to evolve, dedicated cyber coverage offers peace of mind and practical support when you need it most.

Protecting Your Business in Rhode IslandRhode Island

At Cormack-Routhier Agency, Inc., we help Rhode IslandRhode Island business owners assess their risks and build insurance programs that address today’s challenges. If you’re unsure whether your current policies provide adequate cyber protection, our team can review your coverage and recommend solutions tailored to your needs.

Contact us today to discuss your options for cyber liability insurance.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.