Customers or employees who entrust you with private information, such as credit card or social security numbers, put you at risk. If this data is lost, stolen, or compromised, you may be legally obligated to alert those affected by the breach.

Securing a cyber liability policy can cover expenses associated with compliance requirements, such as data breach notification, securing legal counsel to advise on incident response, credit monitoring services, public relations expenses, and paying for regulatory defense and penalties arising from privacy law violations.