Does Retail Business insurance cover data breaches?

Data breaches can be a huge financial burden for small retail businesses. Find out what type of coverage can help protect you.

David Granahan - Writer for NEXT Insurance
By David Granahan
Kelly Hendrickse - editor for NEXT Insurance
Edited by Kelly Hendrickse
Matt Crawford for NEXT Insurance
Fact-check by Matt Crawford

Updated May 29, 2023.

Retail business insurance can sometimes cover data breaches if you have cyber liability insurance as part of your insurance page.

In the United States, data breaches cost an average of $9.44 million in total, and 82% of cybersecurity breaches involved human error in 2022. So, let's see how coverage can help.

» Is your business new? Find out when to purchase business insurance

How can Cyber Liability insurance help?

A cyber liability policy can help provide financial protection if there is a data breach involving important information, such as:

  • Personal customer information
  • Any legal or staff health records
  • Private financial information

Cyber liability insurance can help cover any financial losses you may experience due to cyber attacks or data breaches. For example, if a hacker accesses your customer base, including their personal information inputted, perhaps, when they signed up for loyalty programs.

Ways Retail Business insurance can give protection

In addition to data breach insurance, retail business insurance can help cover other common retail business risks, including:

  • Customer injuries and damage to property that doesn't belong to youGeneral liability insurance can provide financial protection if someone other than an employee gets hurt at your business. It can also provide financial help if you damage someone else's property.
  • Employee injuriesWorkers' compensation insurance can help with medical expenses and lost wages if an employee gets hurt on the job.
  • Damage to your propertyCommercial property insurance can provide financial help if the property you need to do business, including inventory, is damaged or destroyed.

Get protection against retail data breaches with NEXT

In today's digital age, data breaches can be a costly threat to retail businesses.

With the right insurance coverage, you can protect your business from the financial and reputational damage of a breach.

NEXT partners with Coalition to provide fast, affordable and tailored cyber liability insurance. Learn more about this important coverage and get a quote to review your options.

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