In today’s digital age, businesses of all sizes are vulnerable to cyber threats and data breaches. This is why cyber liability has become essential for many businesses. However, there is often confusion when it comes to understanding the difference between these two policies. In this blog post, we will define and explain the differences between cyber liability and professional liability insurance.
Cyber Liability Insurance
Cyber liability insurance is designed to provide coverage for businesses that face digital threats such as data breaches, hacking attempts, and cyber-attacks.
This policy is essential for businesses that handle sensitive customer data such as financial information, medical records, and personal identification information.
To put it simply, if your business uses computers and handles customer data, then you need cyber liability insurance. The coverage provided by cyber liability insurance can help cover costs such as:
- Data recovery
- Legal costs
- Notification expenses
- Investigation costs
- Fines
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, is designed to cover businesses from legal claims related to professional negligence.
This policy is essential for businesses and professionals that provide professional services such as lawyers, doctors, accountants, engineers and consultants.
The coverage provided by professional liability insurance can include legal defense costs, settlements, and judgments that may arise from a claim of professional negligence.
Cyber Liability vs Professional Liability
While there can be some overlap in the coverage offered by these two policies, they do not provide the same type of protection.
Cyber liability insurance covers digital threats such as data breaches and hacking attempts, while professional liability insurance covers claims of professional negligence.
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Another significant difference is the type of business that needs each policy. Cyber liability insurance is essential for businesses that handle sensitive customer data. In contrast, professional liability insurance is more suitable for businesses that provide professional services.
To learn more about Cyber Liability and Professional Liability Insurance, check out our previous post, “Cyber Liability Insurance: Who Needs It and Claim Examples” and “How Much Professional Liability Insurance Do I Need?”
Looking for Cyber Liability Insurance? Carter Bradley Insurance Solutions Can Help
At Carter Bradley, our team is solely focused on your unique needs to find the best prices and coverage you require for your business, home, auto and life insurance.
We are located in Corona, California. Contact us today by email at info@carterbradleyinsurance.com, by phone at (951) 547-4240, or through our social media accounts on Facebook, Twitter, and LinkedIn.
