Sarah runs a mortgage brokerage that handles sensitive client information, including financial records and personal identification. One day, her office falls victim to a cyberattack, compromising her computer systems and allowing cybercriminals to gain unauthorised access to her clients’ data. They threaten to release the information unless a ransom is paid, putting Sarah at risk of legal claims from affected clients.

In this situation, Sarah’s Cyber Liability Insurance becomes crucial, as it would cover the costs associated with the data breach, including legal fees for client notifications, forensic investigations, and potential settlements. Without this insurance, Sarah could face significant financial losses and reputational damage, jeopardizing her business.