Cyber liability insurance is the policy that responds when your network is breached, your data is stolen, or ransomware takes you offline — covering forensics, breach notification, regulatory defense, and the third-party suits that follow.
Last reviewed April 24, 2026 · Reviewed by the Corgi Insurance team
Cyber is the policy that picks up the phone at 2 AM. It pays for the forensics, the breach coach, the notifications, the ransomware negotiator — and defends you when the inevitable class action lands a few months later.
Pulled from the actual form
Cyber Liability
What this policy pays for.
Ransomware encrypts your production database and the attackers demand $400K in Bitcoin.1
Pays the ransom, the negotiator, the forensic investigation, and the recovery costs. Subject to per-event sublimits and pre-approval for ransom payment.
An employee clicks a phishing link and 50,000 customer records are exfiltrated.2
Forensic investigation, breach notification, credit monitoring, public-relations costs, and call-center support — including legally required notifications under state and federal law.
Affected customers file a class action alleging the breach exposed their PII.
Defense and indemnity for class actions and individual suits arising from a privacy breach, network-security failure, or unauthorized data disclosure tied to your systems.
Your platform goes down for 14 hours after a DDoS attack, costing you $80K in lost revenue.3
Lost revenue and extra expenses tied to a covered cyber event that takes your network offline. Subject to a waiting period (typically 8–12 hours) before coverage attaches.
A state AG opens an investigation into your breach notification practices.
Defense costs for investigations by state AGs, the FTC, HHS, and international regulators. Pays civil fines and penalties where insurable by law (varies by jurisdiction).
A wire-transfer fraud scheme tricks AP into sending $75K to an attacker's account.
Reimbursement for losses from fraudulent payment instructions, social-engineering schemes, and computer-fraud incidents. Sublimited; requires standard verification controls.
Ransom payments are subject to OFAC sanctions screening; payments to sanctioned entities are excluded by law and policy.
Breach notification costs are paid above the per-event sublimit when state law mandates the notification (e.g., California CCPA, NY SHIELD Act).
Business interruption coverage attaches after the waiting period; some industries (managed service providers, payment processors) have longer default waiting periods.
Cyber, Tech E&O, and Crime each handle a different category of digital risk. Most data-handling startups need at least Cyber and Tech E&O.
Defends the company against data breaches, ransomware, business interruption from cyber events, and third-party privacy lawsuits. Required by SOC 2 vendor reviews and most enterprise procurement teams. Standard limits scale from $1M for early stage to $5M+ for growth-stage companies handling sensitive data.
Defends the company when its software causes financial harm to a customer. Where Cyber covers security failures (data was breached), Tech E&O covers performance failures (software didn't work). Both are usually required by enterprise contracts; Corgi bundles them in one policy package.
Covers theft of money — including employee theft, social-engineering fraud, and computer-fraud schemes — that move actual dollars (not data). Cyber's funds-transfer sublimit overlaps Crime, but Crime carries higher dedicated limits when fund movement is the primary exposure.
Cyber liability is required by virtually every SOC 2 audit and enterprise vendor-risk review. Customers expect minimum limits ($2M–$5M is typical), proof of breach-response retainers, and a Certificate of Insurance naming them as Additional Insured. The Corgi cyber policy supports the language and limits standard procurement teams expect.
The policy aligns with state breach-notification statutes (CCPA, NY SHIELD, MA 201 CMR 17), federal frameworks (HIPAA for PHI, GLBA for financial data), and international regimes (GDPR for EU residents). Coverage applies to legally required notifications and regulatory defense costs subject to insurable-by-law limits.
Cyber liability is designed for any company that stores customer data, handles payments, runs a network, or provides software services — from SaaS and fintech to health-tech, marketplaces, and AI. The policy responds to ransomware, breach notification, regulatory defense, business interruption, and third-party privacy claims.
Ransom negotiation, payment (subject to OFAC screening), forensic investigation, and recovery — including the cost of the negotiator, the wallet, and rebuild.
24/7 access to a vetted breach coach and forensic firm. Pays for legally required notifications, credit monitoring, and call-center support.
Defense and indemnity for class-action suits and individual claims arising from a privacy breach or unauthorized data disclosure tied to your systems.
Defense costs for state AG, FTC, HHS, GDPR, and other regulator investigations. Civil fines and penalties paid where insurable by law.
Lost revenue and extra expenses when a covered cyber event takes your network offline. Subject to a waiting period (typically 8–12 hours).
PR firm engagement, customer communication, and reputation-management spend tied to a covered breach. Included in breach-response coverage.
Cyber is the breach-response backbone for any startup with customer data. Layer in CGL, Tech E&O, D&O, and more — modular coverage that grows with you.
Protects your business against third-party claims for bodily injury, property damage, and personal or advertising injury arising from your operations.
Protects against losses and claims resulting from data breaches, cyberattacks, and network security failures.
Covers claims alleging your technology products or services failed to perform as intended, causing financial harm to a client.
Covers claims made against company leaders for alleged wrongful acts in managing the business.
Protects against claims alleging wrongful termination, discrimination, harassment, or other employment-related issues.
Protects your company and plan fiduciaries against claims alleging mismanagement of employee benefit plans, including retirement and health plans.
Protects against claims arising from your published or distributed content, including allegations of defamation, copyright infringement, or invasion of privacy.
Provides liability coverage when employees use rented or personal vehicles for company business.
Go deeper on cyber liability and the rest of the startup insurance stack.
Key terms that appear in cyber policies, breach-response playbooks, and SOC 2 reports.
Can’t find an answer to your question? Get in touch
