Cyber Liability Insurance
What Is Cyber Liability Insurance?
Cyber liability insurance helps your business recover from cyberattacks — for example, if your clients’ information was stolen from your online booking system. It can cover the costs to investigate, notify clients, and defend you in a lawsuit.
Why It Matters for Beauty and Bodywork Professionals
Today’s beauty and bodywork businesses operate online; cyber liability insurance coverage protects this essential digital side of operations.
- You collect client names, credit card numbers, and photos (all sensitive data that’s at risk of being compromised)
- Booking platforms and social media DMs make small businesses real targets
- General liability insurance typically excludes cyber liability coverage
- You can shorten your business’ downtime and build back client trust with financial support
Where Can I Find My Insurance Coverage Details?
Cyber insurance for beauty salons, spas, and independent practitioners typically covers “reasonable” expenses of cyberattacks. It won’t cover intentional poor cybersecurity or physical injuries to clients.
Swipe →
| Area | Typically Covered | Typically Not Covered |
|---|---|---|
|
First-Party Costs |
Forensics, data restoration, ransom, and business interruption from a cyber event |
Prior known events or poor security you refused to fix |
|
Third-Party Liability |
Notifying affected clients, credit monitoring, privacy lawsuits, and regulator actions or fines where insurable |
Bodily injury or physical property damage |
What Are the Most Common Cyber Liability Threats?
Any beauty or bodywork professional who does business online is at risk of cyber liability. Here are some common threats:
- Phishing: When you receive a fake invoice or password reset prompt that allows hackers to take control of your computer
- Ransomware: Locks your client files or POS (point of sale) system until you pay
- Lost or unsecured devices: Your business data can be captured if someone accesses your physical phone or tablet
- Social engineering: You can get tricked into sending money to attackers pretending to be people you trust
How Can I Protect Myself From Cyber Liability Risks?
Protect yourself from cyber liability risk by following these best practices.
Quick Hygiene Checklist:
- Turn on multi-factor authentication (MFA) for email, booking, POS, and cloud storage
- Use a password manager and unique passwords
- Encrypt phones and tablets, and use a lock screen
- Keep systems updated and restrict who can export data
- Maintain cloud backups so you can restore data quickly
- Only collect client data that’s essential for your business
- Create an incident plan (who to call, how to access backups, and how to notify clients)
- Sign vendor DPAs (data processing agreements) and confirm PCI (Payment Card Industry) compliance for payments
How Do I Know What’s Excluded in My Coverage Details?
No, usually general liability insurance does not cover cyber incidents. It’s meant to cover physical injuries and property damage. The good news is that cyber liability insurance is specifically designed to protect your business against cyber threats (and only costs $6.58/month with BBI)!
Related Terms
- Coverage Details
- Data Breach
- Endorsement
- Insurance Claim
- Phishing
