Cyber Insurance vs. Professional Liability: What’s the Difference?

Cyber insurance covers hacks, breaches and privacy claims; professional liability covers client claims that your advice or service was wrong. Many firms that hold client data need both.

Cyber insurance covers security and privacy incidents; professional liability covers client claims that your advice or service caused them a loss. A client can sue over bad advice with no data incident at all, and a breach can happen with no service error, so each policy fills a gap the other leaves.

Some insurers combine the two. Chubb sells a product that joins professional, media and cyber cover for certain firms, but that's one insurer's design, not a standard.

If you're a tech or consulting firm, check whether the E&O form excludes breach-related claims and whether the cyber form excludes professional negligence. If both do, a claim that mixes the two can fall through. Also compare retroactive dates, defense costs and limits, since one incident can trigger both policies.

Which Providers Offer Cyber Insurance?

Updated . Check your quote and policy wording to see how this answer applies to your coverage. See the editorial policy or contact Spot with a correction and supporting source.

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