What Is The Difference Between General Liability Insurance and Cyber Liability Insurance?

What Is The Difference Between General Liability Insurance and Cyber Liability Insurance?

If you’re a business owner, having the right insurance policies in place is essential to protect yourself from financial risk. Two common types of coverage that often get compared — and confused — are general liability insurance and cyber liability insurance.

While both are designed to protect your business, they cover very different kinds of risks. Let’s break down what each one does, how they differ, and why many businesses need both.

What Is General Liability Insurance?

General liability insurance is the foundational coverage for most businesses. It protects you from the everyday risks that come with operating a business — particularly those involving physical injuries or property damage.

Here’s what general liability typically covers:

• Bodily injury: If a customer slips and falls at your place of business.
• Property damage: If your operations or products cause damage to someone else's property.
• Legal fees and settlements: If you’re sued over an incident your policy covers.
• Advertising injury: Claims like libel, slander, or copyright infringement in your ads.

It’s a must-have for brick-and-mortar businesses, contractors, and any company that interacts with the public.

What Is Cyber Liability Insurance?

Cyber liability insurance is designed for today’s digital risks — especially those involving data breaches, cyberattacks, and information security.

Cyber liability typically covers:

• Costs to investigate and respond to a cyber breach
• Notifying affected customers
• Restoring lost or damaged data
• Public relations efforts to manage reputational damage
• Legal defense and regulatory fines

If your business stores sensitive information — whether customer data, payment info, or employee records — you face serious exposure to cyber threats. A cyber policy helps protect you financially if a breach or attack occurs.

The Core Difference Between the Two

The biggest difference comes down to what types of risks each policy covers.

General liability insurance is designed to protect against physical claims — such as accidents, injuries, or property damage that occur in the real world.

Cyber liability insurance is designed to protect against digital threats — like cyberattacks, data breaches, or ransomware events that affect your business’s technology and sensitive information.

Why Your Business May Need Both

General liability and cyber liability insurance are not interchangeable. One covers your offline risks, the other your online risks. Together, they help ensure your business is protected from a wide range of potential threats — whether it’s a slip-and-fall incident at your office or a ransomware attack that compromises your customer database.

In today’s environment, both physical and digital risks are real and growing. That’s why most businesses — especially small to mid-sized companies — should consider carrying both types of insurance as part of a well-rounded risk management strategy.

Need help figuring out what your business needs?

Contact us today and we’ll help you review your general and cyber liability insurance options to make sure your coverage matches your risks.