Professional Offices
Accounting, legal, real estate, title and medical offices that hold client financial and personal data.
Cyber Insurance for Small Businesses in Texas
Coverage for the costs that follow a hacked email account, a ransomware attack or a data breach, from forensic work and customer notices to lawsuits.
Who It's For
Businesses That Move Money by Wire or ACH
Contractors, property managers, wholesalers and others who send or receive large payments.
Retail and Restaurants
Businesses that take card payments and keep customer contact lists.
Firms Using Cloud Software
Businesses that run email, bookkeeping and client files through online accounts.
What It Covers
Breach Response
Forensic investigators, legal advice on notice rules, customer letters, call centers and credit monitoring after a breach.
Ransomware and Cyber Extortion
Help responding to a ransom demand and restoring systems and data, subject to the policy terms and the law.
Business Interruption
Lost income and extra expense while your systems are down after a covered cyber event.
Funds Transfer and Invoice Fraud
Money lost when a criminal tricks someone into sending a payment, often written as a separate part of the policy with its own sublimit.
Privacy and Network Liability
Claims from customers, clients or partners whose data was exposed, plus defense costs.
Regulatory Defense
Defense and, where insurable, fines from a government investigation after a breach.
Texas and San Antonio Details
Texas Business and Commerce Code chapter 521 requires a business that owns or licenses computerized sensitive personal information to notify affected individuals of a breach without unreasonable delay and no later than 60 days after it determines the breach occurred. If the breach involves at least 250 Texas residents, the business must also report it to the Texas Attorney General within 30 days through the attorney general's online form, and the office posts a listing of the reports it receives.
The same chapter requires businesses to keep reasonable procedures to protect sensitive personal information and to destroy customer records they no longer keep by shredding, erasing or making the data unreadable. A breach that requires notice to more than 10,000 people also requires notice to the nationwide consumer reporting agencies. Civil penalties run from $2,000 to $50,000 per violation, plus up to $100 per person per day for late notice, capped at $250,000 for a single breach.
Many small business cyber losses start with a compromised email account and a changed invoice or wire instruction. Coverage for that money depends on the policy: some cyber policies include social engineering or funds transfer fraud, some cap it at a small sublimit, and some leave it to a crime policy. Call back on a known phone number before changing any payment instructions; some policies require that kind of verification for the coverage to apply.
Common Questions
Does General Liability Cover a Data Breach?
Generally no. Most general liability and business owner's policies exclude or sharply limit data breach and cyber claims, and some offer a small add on. A standalone cyber policy usually carries higher limits and broader coverage.
What Is the Difference Between First Party and Third Party Cyber Coverage?
First party coverage pays your own costs, such as forensics, notices, data restoration and lost income. Third party coverage pays claims and defense when customers or others say your breach harmed them.
How Long Do I Have to Report a Data Breach in Texas?
Texas law requires notice to affected individuals no later than 60 days after you determine a breach occurred. If 250 or more Texas residents are involved, the Texas Attorney General must be notified within 30 days.
Does Cyber Insurance Cover Wire Fraud?
It depends on the policy. Some cyber policies include social engineering or funds transfer fraud, often at a lower sublimit, and others leave it to a crime policy, so we check that part before you buy.
What Do I Need for a Cyber Insurance Quote?
Your revenue, the kinds of data you keep, and how you handle multifactor authentication, backups and payment verification. Applications ask detailed security questions, so answer them with whoever manages your IT.
Related Coverage
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