Every Delaware business that handles personal data faces serious cyberattack risk. This includes credit cards, Social Security numbers, and health records. While cyber liability insurance is not required by law, Delaware’s strict breach notification rules make coverage essential.
Failing to protect data or notify people quickly leads to fines, lawsuits, and lost contracts. This guide explains who needs cyber insurance in Delaware. It covers what insurance includes and how much it costs.
Who Needs Cyber Liability Insurance in Delaware?
Delaware’s data breach law (6 Del. C. Chapter 12B) requires businesses to notify affected people “without unreasonable delay but not later than 60 days” after determination of a breach of security. This notice is required for any resident of this State whose personal information was breached or is reasonably believed to have been breached, unless it’s determined that the breach is unlikely to result in harm to the individuals. When more than 500 Delaware residents are affected, the Delaware Attorney General must also be notified not later than the time when notice is provided to the residents. Civil penalties may apply if businesses don’t follow these rules.
Some industries face higher risk than others:
Healthcare Providers: Must follow HIPAA rules. Most carry Delaware HIPAA breach insurance. This helps cover fines, legal costs, and required credit monitoring.
Financial Institutions: Banks and fintech firms buy cyber policies. These help them meet GLBA and SEC rules.
Law Firms and Accountants: These businesses handle sensitive financial data and SSNs every day.
Retail & E-Commerce: Must meet PCI-DSS standards to protect payment data from customers.
Government Contractors: Often required to show proof of cyber insurance before signing contracts.
Even small businesses that use basic websites or email become targets. Delaware small business cyber coverage helps defend against phishing, wire fraud, and ransomware attacks.
What Does Cyber Insurance Cover?
Cyber policies typically include two types of coverage. First-party coverage helps your business recover. Third-party coverage protects you when others sue your business.
First-party coverage includes:
Breach investigation and forensics
Ransomware response and system restoration
Customer notifications (as required by law)
Credit monitoring (mandatory if SSNs are compromised, unless unlikely to result in harm)
Public relations and reputation management
Third-party coverage includes:
Legal defense for lawsuits
Regulatory penalties (HIPAA, GLBA, FTC, and state-level penalties as determined by the Attorney General)
Liability for vendor breaches or compromised third-party services
Some policies offer special coverage for:
Delaware legal practices
Education and healthcare institutions
Remote-service and SaaS providers
Real Cyber Threats in Delaware
Delaware businesses face serious cyber threats across all industries. These threats happen every day:
Business Email Compromise (BEC): Hackers pretend to be company partners. They trick employees into sending money to fake accounts. Law firms lose significant amounts when this happens.
Retail Breaches: Malware infects point-of-sale systems at stores. This exposes thousands of customer records. Cyber coverage pays for notifications and legal expenses.
Vendor Attacks: Third-party companies like payroll providers get breached. This exposes employee SSNs and other sensitive data. Organizations must pay costs due to poor vendor oversight.
Healthcare Ransomware: Medical practices face computer shutdowns. This delays patient care and exposes health information. Recovery can take weeks or months.
Delaware law requires notification even when encrypted data is stolen, if the encryption key is also compromised or reasonably believed to have been compromised.
Explore the role of technology in workers’ compensation and how it can strengthen your company’s protection approach.
How Much Does Cyber Insurance Cost in Delaware?
Pricing varies by business size, sector, and cyber safety practices. Most Delaware businesses pay these amounts:
Small Businesses (like dental offices, CPAs):
$1,300–$3,200 per year for $1M in coverage
Deductibles typically range from $5,000–$25,000
Healthcare and Finance Firms:
$5,000–$15,000 per year due to stricter compliance requirements
Several factors affect your premium costs:
Use of multi-factor authentication (MFA)
Data encryption practices
Staff cybersecurity training programs
History of prior breaches
Use of secure vendors and contractors
Businesses with strong cybersecurity controls often get discounted premiums. Regular security training and updated systems help reduce costs.
What To Do If You Are Breached
Under Delaware’s data breach law, your response must be fast and complete. Here’s what you must do:
Notify affected residents “without unreasonable delay but not later than 60 days” after determination of the breach of security. This notification is not required if, after a good faith and prompt investigation, the entity reasonably determines that the breach is unlikely to result in harm to the individuals.
Provide one year of credit monitoring at no cost if Social Security numbers were compromised, unless after an appropriate investigation, it’s reasonably determined that the breach is unlikely to result in harm to the individuals whose SSN was breached. This helps people watch for identity theft. You must pay for this service.
Report the breach to the Delaware Attorney General if more than 500 Delaware residents are affected. This notification must occur not later than the time when notice is provided to the resident. Use the official form on the Attorney General’s website.
Alert your insurance carrier immediately. Most policies require notice within 24–72 hours. Don’t wait to call your insurance company.
Delaying notice can void your policy or trigger state penalties. Quick action protects your business and helps affected people.
Legal Developments in Delaware
Stay alert for legal and regulatory changes. These may impact your obligations:
Encryption Requirements: Delaware law states that the unauthorized acquisition of computerized encrypted data is a breach of security if such acquisition includes, or is reasonably believed to include, the encryption key or the means to render the personal information readable or usable.
Vendor Oversight: Delaware authorities encourage businesses to strengthen oversight of third-party service providers and contractors.
Civil Penalties: The Delaware Attorney General may bring enforcement actions for violations and impose appropriate damages and penalties as authorized by law.
Reasonable Security: Delaware law requires persons who conduct business in the state and who own, license, or maintain personal information to implement and maintain reasonable procedures and practices to prevent the unauthorized acquisition, use, modification, disclosure, or destruction of personal information.
Cyber policies tailored to Delaware regulations help ensure compliance. Good insurance coverage protects your business.
Conclusion: Cyber Insurance as Risk Management
From solo attorneys in Wilmington to retail chains in Sussex County, cyber threats rise every day. Delaware law provides little room for delay when breaches happen.
Cyber liability insurance helps your business:
Comply with breach notification laws
Pay for legal defense, credit monitoring, and public relations recovery
Recover quickly from ransomware or fraud attacks
Meet vendor and government contract requirements
Protect your business reputation
The cost of cyber insurance is small compared to breach costs. A single attack can result in significant financial losses, including breach response costs, legal fees, and regulatory penalties.
Don’t wait until you become a target. Get covered now.
Call our licensed advisors at 855‑718‑7552 for personalized guidance.
