Why Every South Carolina Business Needs Cyber Liability Insurance

By Brad Davis, CIC (August 1, 2025)

If you run a small business in South Carolina, you may think cyberattacks are a "big business" problem. But in reality, cybercriminals often target small to mid-sized companies that lack strong security. Whether you're a restaurant, law firm, medical office, or local retailer, Cyber Liability Insurance is no longer optional – it's essential.

In this post, we'll explain what Cyber Liability Insurance is, why virtually every business should carry it, and how it can protect you from the rising threat of data breaches, ransomware, and digital fraud. If you're a South Carolina business owner, understanding this coverage is a smart way to protect your bottom line.

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What Is Cyber Liability Insurance?

Cyber Liability Insurance helps protect your business from the financial fallout of cyberattacks, data breaches, or other technology-related threats. Coverage typically includes:

• Costs to notify affected customers

• Legal defense and settlements

• Data recovery and system repair

• Ransomware response

• Public relations and reputation management

Some policies also offer access to breach response teams and IT forensics, which can be a huge help when you need to act quickly.

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Why Is Cyber Liability Insurance So Important?

Data breaches and cyberattacks are no longer rare—and no business is immune. According to the FBI's Internet Crime Report, U.S. businesses lost over $12.5 billion in reported cybercrime in 2023, with thousands of incidents targeting small and mid-sized companies.

🚨 Here's What's at Risk:

• Customer names, emails, and passwords

• Credit card or banking information

• Employee SSNs and payroll data

• Vendor and partner access credentials

• Proprietary business information

If any of this information is compromised, it can trigger lawsuits, regulatory fines, business interruption, and major reputational damage.

South Carolina businesses that collect or store personal data, even just through online payments or client email lists, can be held liable for breaches. That's why Cyber Liability Insurance in South Carolina is more important than ever.

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Real-World Scenarios Where Cyber Coverage Helps

Even with good intentions and antivirus software, things go wrong. Here are just a few examples of claims that would be covered by Cyber Liability Insurance:

🛑 Ransomware Attack

A dental practice in Columbia, SC was locked out of its patient records after a staff member clicked a phishing link. The hacker demanded $15,000 in Bitcoin. Cyber coverage helped pay the ransom and covered IT recovery costs.

📧 Email Compromise

A small marketing firm in Charleston had an employee email hacked. The attacker sent fake invoices to clients, causing both financial loss and reputation issues. Cyber insurance covered client notification, legal fees, and loss mitigation.

🔓 Lost Laptop Breach

A restaurant manager in Myrtle Beach left a company laptop in their car overnight. It was stolen—and had sensitive vendor account access. The breach triggered payment card industry (PCI) fines and required a system audit. Cyber Liability Insurance paid for the response.

Here are "10 Cyber Security Tips for Small Business" from the Federal Communications Commission (FCC).

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Isn't My Businessowners Policy Enough?

Most standard Businessowners Policies (BOPs) do not cover cyber risks. They may protect against physical property damage or general liability, but digital threats require separate, specific coverage.

Cyber Liability Insurance fills this growing gap by addressing the unique risks of doing business in a connected world.

If you're not sure whether your current policy includes cyber coverage, we'll gladly review it for free and let you know where you stand.

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Who Needs Cyber Liability Insurance?

In short: virtually every business that uses email, stores customer data, or processes payments.

Industries at high risk in South Carolina include:

• Restaurants and retail (POS systems, credit cards)

• Law firms (confidential client data)

• Medical and dental offices (HIPAA compliance)

• Accountants and financial advisors (tax and banking info)

• Real estate and property management (leasing and personal info)

• E-commerce and online businesses (payment portals and order data)

Even businesses that outsource IT or use cloud-based software are responsible for protecting customer data. You can't rely on vendors to carry all the risk.

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What Does Cyber Liability Insurance Cover?

Coverage varies by policy, but common protections include:

🔒 First-Party Coverages:

• Data restoration and IT forensics

• Ransomware payment reimbursement

• Business interruption due to a cyber event

• PR and reputation management

• Customer notification and credit monitoring

⚖️ Third-Party Coverages:

• Legal defense costs

• Settlements or judgments

• Regulatory fines and penalties

• PCI DSS (Payment Card Industry) violations

Some policies also include optional risk management tools like breach response planning, employee training resources, and 24/7 cyber incident hotlines.

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Is Cyber Liability Expensive?

For most small to mid-sized businesses in South Carolina, cyber coverage is surprisingly affordable—especially considering the cost of a single breach.

Premiums typically range from $500 to $2,500 per year, depending on:

• Industry and business size

• Amount and type of data collected

• Annual revenue

• Current security protocols

At Davis Insurance Associates, we help business owners across Myrtle Beach and South Carolina find the right Cyber Liability Insurance—without overpaying. We compare quotes from top carriers and tailor coverage to fit your risks.

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South Carolina Cybersecurity Laws: Another Reason to Be Covered

South Carolina doesn't have a comprehensive cybersecurity law like some other states, but it does require businesses to notify affected individuals after a data breach involving personal information, under the South Carolina Data Breach Notification Law (S.C. Code § 39-1-90).

However, there are some industry-specific cyber or breach notification laws. It's best to familiarize yourself with the laws involving your business's industry.

Violating this law or delaying notification can result in regulatory action or lawsuits.

You can read more about this at the South Carolina Department of Consumer Affairs.

Having Cyber Liability Insurance ensures you have the legal and financial resources to respond appropriately—and legally—after a breach.

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Final Thoughts: Don't Wait Until It's Too Late

Cyberattacks are no longer a far-off threat – they're a daily reality for businesses right here in South Carolina.

If your business collects customer emails, runs payment systems, or stores any personal data, you need to protect it. A single cyber event could set your business back months, or worse.

Just by purchasing Cyber Insurance you may be better prepared. While going through the application you may become aware of security gaps or things you can improve. Also, many Cyber Liability insurance companies offer great resolution and guidance solutions.

No two companies offer the same Cyber Liability policy. Don't assume because you have cyber coverage included in your business policy or even a stand alone policy, that you have the coverage you need.

Cyber Liability Insurance is one of the smartest, most affordable ways to protect what you've worked hard to build.

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🖥️ Ready to Review Your Cyber Protection?

We work with businesses of all sizes across Myrtle Beach and the entire Palmetto State. Whether you need a standalone cyber policy or want to add coverage to your current package, we can help.

📍 Based in Myrtle Beach, SC
📞 Call (843) 213-0000
🌐 Request a Quote

Let's make sure your business is protected in the digital age—before you need to file a claim.