Data breach insurance

Protects against digital threats, safeguarding your business’s sensitive data.


What is data breach insurance?

Data breach insurance, or cyber liability insurance, protects your business from the financial fallout of electronic data breaches and cyber attacks.

It covers a wide range of expenses incurred in the aftermath of a breach, including customer notification, credit monitoring services, public relations efforts to manage the breach’s reputation impact, legal fees and settlements or judgments from lawsuits related to the breach.

Data breach insurance specifically addresses the financial consequences of cyber incidents like hacking and data theft.

What are data breaches?

Risks to your cybersecurity can come from various sources, both inside and outside your organization. This could involve:

  • Hacking: Cybercriminals with malicious intent infiltrate your computer systems to steal or exploit sensitive data.
  • Phishing: Deceptive emails or websites trick unsuspecting individuals into revealing personal information or clicking on malicious links, leading to data breaches.
  • Human error: Careless or unintentional actions by employees, such as clicking on phishing links or losing unencrypted devices, can expose sensitive data.

What data breach insurance typically covers

Data breach insurance covers a range of sensitive information that can be compromised in a breach:

  • Personal identifiable information (names, addresses, Social Security numbers, date of birth)
  • Credit card and banking information
  • Health information (medical records, health insurance information)
  • Employee information (payroll information, contact details)
  • Confidential business information (trade secrets, proprietary business data)
  • Customer data (contact information, purchase history)

In the event of data infringement or violation, data breach insurance can cover costs such as:

  • Notification costs (notifying affected consumers)
  • Credit monitoring services for affected individuals
  • Legal fees (legal advice and representation)
  • Forensic analysis (investigation of the breach)
  • Public relations and crisis management
  • Restoration and recovery costs (restoring data, repairing systems)
  • Regulatory fines and penalties

Who needs data breach insurance?

If your business handles sensitive electronic data, such as customer information, financial records, or intellectual property, data breach insurance can protect your financial well-being and reputation. Any small business that handles digital financial transactions and sensitive data could benefit from data breach insurance.

While U.S. federal laws don’t require this insurance, strict state data protection and privacy laws make it important. Penalties for not following these laws can be financially damaging, but data breach insurance can help soften the blow.

Specific industry regulations, like Health Insurance Portability and Accountability Act (HIPAA) for healthcare and Gramm-Leach-Bliley Act (GLBA) for financial services, also demand strong data protection. They don’t directly require data breach insurance, but the heavy penalties for not complying make having this insurance a wise choice.

Your technology protected with NEXT

With NEXT you can get Cyber Insurance coverage that includes top-notch security services through our partnership with Coalition. We also cover other small business insurance options such as General Liability, Workers’ Compensation and Commercial Property.

What’s more, you get convenient 24/7 access to your plan and policies, allowing you to oversee your coverage on your own timeline effortlessly.

Begin a quote, tailor your preferences, and access your proof of insurance in approximately 10 minutes.

Start a free instant quote with NEXT.

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Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers' Compensation Insurance
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto Insurance
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment Insurance
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property Insurance
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy Insurance
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.