Do You Really Need Cyber Liability Insurance?

Yes. And It’s Not Just for Tech Companies.

Let’s clear something up - cyber liability insurance isn’t just for big tech companies, hospitals, or online retailers. These days, it’s for any business that uses email, has a website, stores customer data, or accepts electronic payments.

That means if you run a restaurant, a construction company, a property management firm, a service-based business, or anything in between, you’re in the cyber risk game, whether you want to be or not.

At Pelican Shield Insurance Group, we help real businesses protect what they’ve built. Based in St. Petersburg, Florida, and serving clients across both Florida and Virginia, we provide commercial insurance solutions that work in the real world. If you're new to us, you can contact us , learn about who we are , or check out other insurance coverages we offer.

What Is Cyber Liability Insurance?

Cyber liability insurance helps cover the financial and operational fallout of a cyberattack, data breach, or system failure. It can help protect your business from the costs of:

Lost or stolen customer data (names, addresses, credit cards, etc.)
Ransomware attacks or data being held hostage
Business interruption due to a system or security failure
Email fraud and phishing
Regulatory fines or legal fees
Customer notifications and credit monitoring after a breach
PR and reputation management

It’s not just a financial tool. The best policies also include access to breach response teams, forensic specialists, and 24/7 helplines to walk you through next steps when something goes wrong.

"I’m a Small Business. Why Would Anyone Target Me?”

That’s exactly why cybercriminals target you.

Small businesses tend to:

Use weak passwords
Lack dedicated IT staff
Store sensitive info in unsecured systems
Fail to monitor for suspicious activity
Assume it won’t happen to them

Whether you’re running a restaurant in Tampa, a roofing company in Richmond, or clothing store in Sarasota - if you have employees, customers, internet access, or take credit cards, you’re at risk.

Real Risks, Real Costs

Cyber incidents don’t just cause headaches. They can drain your resources, damage your reputation, and stop your business cold.

According to the IBM Cost of a Data Breach Report 2024, the average cost of a data breach in the United States is over $9.5 million, with small and midsize businesses still seeing average incident costs in the $120,000–$250,000 range.

Ransomware attacks, on the other hand, have continued to rise - with the average demand now exceeding $100,000 for small businesses. That doesn’t include downtime, lost contracts, or recovery costs.

These aren’t “big company” problems anymore - they’re everyday risks for contractors, restaurants, professional service firms, and property managers.

With the right cyber liability coverage in place, you’re not paying for all of that out-of-pocket.

Common Cyber Threats Facing “Offline” Businesses

Even if your business isn’t run online, you're connected in ways that make you vulnerable:

Email phishing scams: Your staff clicks a link, and suddenly you’re locked out of your systems.
Invoice manipulation: Hackers intercept an email chain, change payment info, and your funds go to the wrong place.
Vendor breaches: A supplier’s data leak exposes your customer info.
Ransomware: Your files are encrypted and held hostage until you pay.
Stolen devices: An employee loses a laptop or tablet with customer data on it.

You don’t need to be running a tech company to be exposed - you just need to have a login screen and a few employees. Cyber risk is baked into the way we all do business now.

Is Cyber Liability Expensive?

That depends - on your business, your exposure, and what kind of coverage you’re actually getting.

A lot of business owners assume they’re covered because they have a cyber endorsement tacked onto their General Liability or Business Owner’s Policy (BOP). But here’s the issue: those endorsements typically have low limits and narrow definitions of what’s covered. They’re often not broad enough to handle the complexity - or the cost - of a real cyber event.

If your business stores sensitive data, uses email for transactions, processes payments, or relies on connected systems to operate, you need a standalone cyber liability policy.

What affects the cost of a standalone cyber policy?

Industry and business type
Annual revenue
Number of employees and users with system access
Security controls in place (like multi-factor authentication or data encryption)
Amount and sensitivity of stored data
Claims history

Cyber insurance isn’t a “set it and forget it” product. The risk environment changes constantly - so your policy needs to be built with real awareness of how your business operates.

At Pelican Shield, we help clients choose standalone cyber liability policies with real coverage - not marketing language. That means broader protection, higher limits, and support when it matters.

What Does a Good Cyber Policy Include?

Not every business needs the same coverage. A manufacturer in St. Petersburg, a restaurant group in Richmond, or a construction company in Sarasota are all exposed to different risks - so their cyber protection should reflect that.

For example:

A business involved in media or content creation may need media liability, either as part of their cyber policy or professional liability coverage.
A contractor accepting online payments or using vendor portals may need strong social engineering protection.
A medical spa or clinic in Florida handling patient information might require HIPAA-related breach support.

That’s why we tailor policies that make sense - not just make assumptions.

But in general, a well-structured standalone cyber policy should cover three key areas:

1. Event Response Coverage

This helps your business recover after a cyber incident, and can include:

Breach response and notification services
Digital forensics
Ransomware and extortion
Business interruption due to security failure or system failure
Data and system restoration
Crisis communications and PR
Reputational harm
Cost to replace "bricked" hardware
Loss calculation and proof-of-loss prep
Court attendance reimbursement and criminal reward expenses

2. Cyber Crime Coverage

This part protects your business from direct financial losses caused by cyberattacks or fraud, such as:

Funds transfer fraud
Invoice manipulation
Social engineering (like phishing scams)
Service fraud, including cryptojacking

3. Third-Party Liability Coverage

This protects you when a client, vendor, or third party claims your business caused them damage due to a cyber incident. It typically covers:

Defense costs
Settlements and damages
Regulatory investigations and fines
Costs related to privacy breaches or mishandled data

At Pelican Shield, we partner with a wide range of insurance carriers to give our clients access to standalone cyber policies, 24/7 breach response teams, and proactive risk management strategies - not just claims paperwork after the fact.

What You Can Do Today to Reduce Your Risk

Cyber liability insurance isn’t a substitute for smart cybersecurity practices.

But it is a critical backup plan.

Here’s what you can do right now:

Use two-factor authentication for email and systems
Train employees on phishing and social engineering
Regularly update software, browsers, and firewalls
Require strong passwords and rotate them
Limit who has access to sensitive information
Back up systems regularly and keep them off-network

And of course - review your insurance coverage . If you’re not sure what your current policy includes - that’s your first red flag.

Final Thoughts: You’re Not Too Small to Be Targeted

Whether you’re a local contractor , a family-run restaurant, a property manager, or a night lounge - if you’re connected, you’re exposed.

Cyber liability insurance used to be optional. Now, it’s just part of doing business.

If you're using email, handling customer information, logging into platforms, or accepting online payments - you need to be thinking about cyber risk.

At Pelican Shield Insurance Group, we help business owners in Florida and Virginia protect what they’ve built - from job sites to inboxes. No tech jargon. No upsell. Just real coverage that works when you need it most.

Learn more at www.pelicanshield.com , check out our other blogs , or contact us to get a quote or ask questions.

Or call us directly at 727-369-9077.

We do what we say we’re going to do.

DATE

Aug 07 2025 14:09

AUTHOR

David Jenkins