Cyber Liability Insurance
Automotive businesses increasingly rely on digital systems for sales, customer management, diagnostics, and payment processing. Cyber Liability Insurance protects your business from the financial and reputational fallout of cyber incidents. This includes data breaches, ransomware, network interruptions, and the theft of sensitive customer information.
Protect Your Assets with Cyber Liability Insurance
At AutoRisk, we provide tailored insurance solutions that allow business owners to operate with peace of mind—knowing their assets and liabilities are covered by experts who understand the unique demands of the automotive industry.
States We Provide Insurance Coverage:
Colorado – California – Texas – Wyoming – Arizona – New Mexico – Utah – Kansas – Missouri – Oklahoma – Arkansas – Idaho – Iowa – Indiana – Nebraska – Nevada – North Dakota – South Dakota – Montana
Why Automotive Businesses Need Cyber Coverage
Automotive businesses handle sensitive data every day including customer names, addresses, driver’s license numbers, and financial or credit information. You also rely on digital tools for scheduling, parts orders, vehicle diagnostics, and sales management.
A single cyberattack can result in:
Data theft from your CRM or payment systems
Ransomware attacks locking you out of your operating software
Phishing scams targeting employees or vendors
Business interruption from system shutdowns or network failure
Regulatory fines and customer lawsuits after a data breach
Cyber Liability Insurance helps your business respond to these events, minimize downtime, and manage the financial impact.
Benefits of Cyber Liability Insurance
Protects your business from the financial fallout of cyber incidents.
Covers data breach response and system restoration costs.
Helps maintain customer trust and business continuity.
Provides access to 24/7 cyber incident response experts.
Satisfies vendor or manufacturer data protection requirements.
Don’t leave your coverage to chance, work closely with an expert who understands your operation.
What is Covered?
A comprehensive cyber policy may include:
Data breach response – Covers legal, forensic, and notification costs after personal data is compromised.
Cyber extortion & ransomware – Pays for recovery expenses and ransom negotiation services.
Business interruption – Compensates lost income if your systems go offline due to a cyberattack.
Data recovery – Helps restore or recreate lost or corrupted digital files.
Third-party liability – Covers lawsuits or settlements if customers or partners sue over exposed data.
Regulatory penalties – Pays fines or defense costs related to privacy law violations.
Reputation management – Includes public relations or credit monitoring services for affected clients.
Common Cyber Risks in the Automotive Industry
Dealership system breach exposing customer credit applications.
Ransomware attack locking repair order and scheduling software.
Phishing email tricking staff into wiring funds to a fraudulent vendor.
Malware infection spreading through connected diagnostic equipment.
Cloud storage compromise leaking sales and service data.
Cyber threats are now one of the fastest-growing risks for automotive operations of all sizes.
Getting a Quote for Cyber Coverage
When applying for coverage, insurers may ask for:
Business size, type, and number of employees
Volume of customer data stored
Use of encryption, firewalls, and multi-factor authentication
Third-party vendor and cloud system details
Past incidents or IT audits
This information helps tailor a policy that fits your automotive operation’s risk profile and technology setup.
Insurance companies generally require that dealers insure 100 percent of the value of their inventories. If you insure less than this, they will only pay a corresponding percentage of your claim.
For example, if the value of your inventory is $200,000 and you insure it at $100,000, the insurance company is only required to pay for 50 percent of your claim.
The most that will be paid for a loss to any single auto is the lesser of the actual cash value of the damaged or stolen property, the wholesale value of the property, the cost of repairing or replacing the damaged or stolen property or the limit indicated as the most that will be paid for any single auto based on the coinsurance formula.
- Monthly reporting requires the dealer to send the insurance carrier a monthly report with the exact dollar value of vehicle inventory. There can be severe penalties if the dealer fails to submit reports to the carrier on a timely basis. After the first report is not received, the carrier will typically only pay 75% of a claimed loss – regardless of the limit on the declarations page. Monthly reporting is typically used to insure inventories valued more than $1,000,000.
- Non-reporting requires the dealer to state the maximum value of the inventory on the premises during the policy term. For this option, it is important to pick the value of the inventory at its highest peak to avoid a coinsurance penalty. Under-estimation of value of inventory can raise the specter of co-insurance as well as any other penalties the insurer may levy in the event of a claim.
What Cyber Liability Does Not Cover
While broad, cyber coverage typically excludes:
Intentional or fraudulent acts by company insiders
Bodily injury or property damage
Failure of physical infrastructure (power or utilities)
Outdated software or unpatched systems in violation of policy terms
Your broker can help ensure your policy aligns with your IT security practices and legal obligations.
Benefits of Working With AutoRisk
Hundreds of Clients Nationwide | Fast and Responsive Advisors | Transparent Coverage with No Surprises
Custom Policy Design
We customize your coverage based on your business operations, risk exposure and geographic location with the goal of reducing your claims.
Industry Expertise
We specialize in automotive business risk management. Our team understands the automotive industry and delivers solutions to reduce claims and save money.
Competitive Pricing
We work with specialized underwriters and carriers to offer the most coverage for your dollar, helping you stay profitable while staying protected.
Claims Support That Works for You
In the unfortunate event of a loss, our subject matters experts will help you though the claims process, minimize downtime, and recover value efficiently.
Learn More About the Insurance Required to Protect your Business
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