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What is cyber liability insurance?

Cyber liability insurance covers the costs of a data breach or cyber event, including customer-notification, recovery, liability, and sometimes business interruption. Any eCommerce store that holds customer data or processes payments has cyber exposure, which sits alongside, not instead of, product and general liability.

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What cyber liability covers, and what it does not.

Covered

  • data-breach response and customer notification
  • liability for exposed customer data
  • recovery and, on some policies, business interruption
  • certain cyber-extortion and fraud costs

Not covered

  • product-injury claims (needs product liability)
  • physical property damage
  • the cost of upgrading your own security

Who needs it

Any store that stores customer data, holds email lists, or processes online payments.

Typical cost

Small-merchant cyber often runs about $25 to $75/mo depending on data volume and revenue.

Where Assureful fits

Coverage priced on your real sales.

Cyber is a real eCommerce exposure but sits outside Assureful's product and general liability focus. Assureful connects to your store, prices product and general liability from actual monthly sales, and issues a marketplace-ready Certificate of Insurance when a platform or buyer asks.

From $26/mo

Pay-as-you-sell insurance

  • A-rated underwriters
  • 42% less than comparable A-rated insurers (avg)
  • Quote in 2 minutes
  • No annual forecasts
  • Cancel anytime

No obligation. Cancel anytime.

Questions

Cyber liability FAQ.

Does product liability cover a data breach?+

No. Product liability covers physical product injury and damage. Data breaches and cyber events need a separate cyber liability policy, which most online stores handling customer data should consider.

Related coverage

General information, not insurance advice. Source: Insurance Information Institute: cyber insurance. Reviewed 2026-07-01.