Cyber Threat Report

Cyber Insurance vs. General Liability Insurance: What’s the Difference, and Why Does it Matter?


As cyber threats become increasingly prevalent, organizations are looking for ways to protect themselves against potential data breaches and cyber threats. Two common types of insurance that organizations may consider are cyber insurance and general liability insurance. While both provide protection, they offer different types of coverage for risks.

In this blog, we'll take a closer look at the difference between cyber insurance and general liability insurance, and why it's important for organizations to understand the distinction between the two.

General Liability Insurance

General liability insurance is essential for organizations to protect themselves against legal liability for accidents that may happen on their property or as a result of their operations. This type of insurance is often required by law and can cover claims of bodily injury, property damage, and/or advertising injury.

Depending on the policy, general liability insurance may help cover legal costs, judgments, and settlements in the event of a covered incident.

General liability insurance is designed to cover a wide range of incidents. These can include:

  • Slip-and-fall accidents that happen on your organization's property or on a job site
  • Property damage caused by your employees
  • Advertising injuries such as libel or slander

Additionally, some policies may provide coverage for incidents that occur off-site, such as a contractor's work at a client's location. General liability insurance can cover a wide range of incidents, however, it typically does not cover losses related to cyber incidents.

Cyber Insurance

Cyber insurance, on the other hand, is specifically designed to protect organizations against losses related to cyber incidents. As cyber threats become more prevalent, cyber insurance has become increasingly important for organizations of all sizes.

Cyber insurance policies cover a wide range of incidents, such as:

  • Data breaches
  • Data theft
  • Cyber extortion
  • Business interruption
All of which can be caused by a cyber incident. Data breaches can be particularly damaging for organizations, as they may result in the loss of sensitive data such as financial information, trade secrets, and personal information of employees and customers.

In addition to covering the cost of damages resulting from cyber incidents, cyber insurance policies may also cover a variety of expenses associated with a breach. These expenses can include forensic investigations, legal fees, notification costs, credit monitoring, and public relations expenses. Some policies may also provide coverage for loss of income or extra expenses incurred as a result of a cyberattack.

It's important to note that cyber insurance policies can vary widely in terms of coverage and cost. Some policies may provide very basic coverage, while others may offer extensive protection against a wide range of cyber threats.

Organizations should be careful when reviewing their cyber insurance policies to ensure that they have the appropriate coverage to meet their needs.

It is also prudent to have the policy reviewed by Counsel experienced with cyber insurance and laws related to cyber incidents. Don’t forget to carefully examine any claim exclusions. This language should clearly spell out what the carrier will not cover should a claim be filed.

Why Does it Matter?

All organizations should strongly consider purchasing cyber insurance coverage. Understanding what the policy actually covers and what it doesn’t is critical, and can be the difference between your organization surviving a cyber incident or not.

While general liability insurance is an important form of protection for some types of losses, it will not cover losses related to cyber incidents. If properly researched and procured, cyber insurance will provide an added layer of specifically designed protection.

By understanding these distinctions, organizations can better protect themselves against a wide range of threats. With the right insurance coverage in place, organizations can focus on what they do best while knowing that they are protected against the unexpected.


At JANUS Associates, our mission is to improve the information security of our clients, and society at large. In business since 1988, JANUS offers a full range of high-quality cyber security, privacy, and regulatory compliance services at affordable costs.

We understand the challenges that organizations of all sizes face. We can help you achieve your information security goals regardless of your size. To learn more about how a team of affordable professionals can help you secure your organization, contact us today.