Cyber Liability Insurance

Why You Must Have California Cyber Liability Insurance

Several years back you may have been fine with your basic business insurance policy.  But as the threat and cost of losses has increased Traditional business liability policies have carved out completely or limited your coverage to the point is is extremely unlikely to protect against most cyber exposures.  That’s why cyber liability insurance is so important.

Today standard commercial policies are written to insure against injury or physical loss and will do little, if anything, to shield you from electronic damages and the associated costs they may incur. Exposures are vast, ranging from the content you put on your website to stored customer data. Awareness of the potential cyber liabilities your company faces is essential to managing risk through proper coverage.  Contact GDI Insurance Agency Inc for your cyber liability insurance quote 1-209-634-2929.

cyber liability insurance

Why Your Business Needs Cyber Liability Insurance

Data breaches occur every day. Hacking incidents are the most recognizable and expensive cause of data loss, and over the last few years have become the most common.

      • 49% of the data breach causes are malicious and criminal attacks.
      • 32% are system glitches, such as software updates, which inadvertently expose sensitive private files.
      • 9% are from people making mistakes, such as losing laptops and flash drives No matter the sophistication of the security system, there is little that can be done to eliminate the risk of human error.

        As reliance on technology continues to increase, new exposures continue to emerge. As your business grows, make sure your cyber liability insurance coverage grows with it. GDI Insurance Agency, Inc. is here to help you analyze your needs and make the right coverage decisions to protect your operations from unnecessary risk.


Possible exposures covered by a typical cyber liability policy may include the following:

    Data breaches:

    Increased government regulations have placed more responsibility on companies to protect clients’ personal information. In the event of a breach, notification of the affected parties is now required by law. This will add to costs that will also include security fixes, identity theft protection for the affected and protection from possible legal action. While companies operating online are at a heightened risk, even companies that don’t transmit personal data over the internet, but still store it in electronic form, could be susceptible to breaches through data lost to unauthorized employee access or hardware theft.

    Intellectual property rights:

    Your company’s online presence, whether it be through a corporate website, blogs or social media, opens you up to some of the same exposures faced by publishers. This can include libel, copyright or trademark infringement and defamation, among other things.

    Damages to a third-party system:

    If an email sent from your server has a virus that crashes the system of a customer, or the software your company distributes fails, resulting in a loss for a third party, you could be held liable for the damages.

    System failure:

    A natural disaster, malicious activity or fire could all cause physical damages that could result in data or code loss. While the physical damages to your system hardware would be covered under your existing business liability policy, data or code loss due to the incident would not be.

    Cyber extortion:

    Hackers can hijack websites, networks and stored data, denying access to you or your customers. They often demand money to restore your systems to working order. This can cause a temporary loss of revenue plus generate costs associated with paying the hacker’s demands or rebuilding if damage is done.

    Business interruption:

    If your primary business operations require the use of computer systems, a disaster that cripples your ability to transmit data could cause you, or a third party that depends on your services, to lose potential revenue. From a server failure to a data breach, such an incident can affect your day-to-day operations. Time and resources that normally would have gone elsewhere will need to be directed towards the problem, which could result in further losses. This is especially important as denial of service attacks by hackers have been on the rise. Such attacks block access to certain websites by either rerouting traffic to a different site or overloading an organizations server.

    Cyber liability insurance

    is specifically designed to address the risks that come with using modern technology; risks that other types of business liability coverage simply won’t. The level of coverage your business needs is based on your individual operations and can vary depending on your range of exposure. It is important to work with a broker that can identify your areas of risk so a policy can be tailored to fit your unique situation.

    Get Your California Cyber Liability Protection Today

    As reliance on technology continues to increase, new exposures continue to emerge. As your business grows, make sure your cyber liability insurance coverage grows with it. GDI Insurance Agency, Inc. is here to help you analyze your needs and make the right coverage decisions to protect your operations from unnecessary risk.

    An Examination of Our Cyber Breach

    Our office suffered a 3rd party cyber breach on July 10, 2019.  We’ve put together a case study that explains what we experienced, the costs we incurred, what we learned, and what we would change.

    The Event & The Extent
    Our computers and systems were crashing and we soon found out our Remote IT Company had been hacked and the hacker deployed ransomware via Remote IT Company’s system to all of their clients’ systems – nearly 400 businesses in all were impacted.
    The Costs
    There’s a lot to consider
    • Forensic Systems Audit
    • Legal Costs
    • Business Income
    • Notification Expense
    • Hardware & Software Replacement
    The Lessons Learned
    We learned a few big lessons through our trying Cyber Loss, the most obvious being that Cyber related losses are FAR MORE impactful to most businesses than anyone takes the time to appreciate.

    Get Your Business Insurance Quote Today!

    We are a multi-faceted Business Insurance Agency that handles a wide variety of policies of almost any scale for many different professions and establishments.  Our team has the experience and knowledge to help you, your organization or business be secure and protected.


    We have many commercial insurance policies to choose from:

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    GDI Insurance Agency, Inc. Your Trusted Business Insurance Experts

    GDI Insurance Agency, Inc.

    At GDI Insurance Agency, Inc. we will do the work for you to ensure you have the best protection plan for your California business automobiles.  Not only that, but as you can see, we will go the extra mile to make sure your business is protected from the inside-out. 

    Located in Turlock, CA we have offices throughout California’s Central Valley, Northern California and beyond.

    To put the GDI Insurance Agency, Inc. experts to work for you, simply fill out the Protection Savings Form above or call our office today at 1-888-991-2929 to learn more about GDI’s Exclusive California Cyber Liability Insurance program.