These days it’s easier to think of who hasn’t faced a major cyber security breach than who has. Everyone from government agencies to major companies and even defense contractors have faced recent and high profile breaches. These incidents don’t just cause a media headache, but present major costs to the companies affected. A cybersecurity breach presents a double-edged sword. Companies don’t just have to deal with the physical security hole itself but must also cover the cleanup including customer notification and attorney’s fees.

And gone are the days when only large companies had to fear hackers. Verizon’s 2011 Data Breach Investigations Report cites that smaller sized companies are now prime targets for hackers. Smaller companies may not be able to recover from problems as easily as large companies, and lack the financial infrastructure to cover costs.

Enter “cyber liability coverage” which is a relatively new offering in the insurance industry. Operating under the commonly held belief today that it’s not if you’ll undergo a cyber attack it’s when, liability coverage ensures that businesses are covered for the costs associated with a breach, from attorney’s fees to credit monitoring.

Fox’s Business’ Small Business Center notes that cybersecurity policies may include:

  • Breach Notice Costs (Don’t think those mailed notices and credit reports come cheap)
  • Damages and Defense Costs (Coverage for information security and cyber breaches)
  • Service Provider Breach (Protects your information wherever it’s at ? even in the cloud)
  • Crisis Management and Data Restoration (Helps you get up and running)
  • Denial-of-Service Attacks (Lost income or the cost to get up-and-running after a denial of service)
  • Cyber Extortion (Can cover the costs of settlement or hiring a security team to track down a hacker)

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Lindy Kyzer is the director of content at ClearanceJobs.com. Have a conference, tip, or story idea to share? Email lindy.kyzer@clearancejobs.com. Interested in writing for ClearanceJobs.com? Learn more here.. @LindyKyzer