How Cyber Insurance Protects NYC Landlords

Cyber attacks are on the rise. According to the Hiscox Cyber Readiness Report 2024, the number of U.S. businesses that experienced a cyberattack has risen steadily for four years in a row, and 67% of U.S. businesses report having been attacked. Last year, more than one billion records were stolen in cyber breaches. Victims included customers of AT&T, Change Healthcare, Ticketmaster, Kaiser, and the U.S. Postal Service (USPS). The company behind the data broker National Public Data filed for bankruptcy after three billion records affecting 270 million consumers were stolen.

So far in 2025, several companies, including banks, online services, retailers and others, have reported the theft of millions of passwords, credit card information, and other sensitive data.

While some larger businesses may have deep enough pockets to weather a data breach, many small business owners, including landlords, often can’t. The damage and liability of a cyber attack, as well as the measures required to prevent another one, are more than many landlords can afford.

The solution: Adding cyber insurance to a standard building insurance policy can help protect you against this real threat.

What is Cyber Insurance?

Cyber insurance covers costs incurred after private, non-public data is lost, stolen, ransomed, or accidentally exposed. Such policies can be customized to fit the unique needs of the business and property.  This insurance can cover data breaches, cyber extortion, liability, and other related costs.

How Can Cyber Insurance Protect Landlords?

Common methods of entry used by hackers to steal sensitive data include cloud servers (like Google Drive or Dropbox), business email, and mobile devices used or owned by employees. Hackers know multiple ways to access data and systems. If an employee’s phone is lost or stolen and the person uses easy-to-guess passwords (a common problem), your business could be vulnerable.

Landlords often use these tools and others to collect and store personal information, like birth dates, credit scores, address and employment histories, payment histories, bank account information, and Social Security numbers. Employees, tenants, and even vendors may be at risk.

If a hacker discovered your email login information or accessed a mobile device where you store some of this data, you could face at least three immediate costs:

• Business Interruption. After an attack, you would likely need to halt most daily business activities, which would cause unexpected downtime and loss of productivity. According to the Insurance Information Institute, business interruption is the most common type of loss for businesses that experience a cyber attack. Cyber insurance can be customized to cover incurred losses if a data breach forces you to shut down parts of your business.
• Customer Notification. You’d need to find out what data was exposed in the attack and notify the customers and vendors who were affected, according to New York and New Jersey laws. Cyber insurance can help cover the costs of identifying whose data was affected and sending notifications.
• System Recovery. If the attack damaged your mobile device, firewall or network, you might need repairs or replacements to bring your systems back online. Many standard building insurance policies provide replacement coverage for some incidents, but it isn’t always comprehensive. A cyber insurance add-on can help replace damaged hardware so you can quickly resume operations.

Cyber insurance policies can be tailored to provide exactly the protection any given business and landlord needs. This special coverage can protect against many potential liabilities and help landlords recover if data is compromised or stolen.

Call our office at 877-576-5200 to learn about cyber insurance or request a free landlord insurance quote.