Cyber Insurance: Frequently Asked Questions

What is cyber insurance?

Cyber insurance is a type of insurance that can help protect a business in the event of a data breach, network security failure, or other cyber threat, and from risks relating to information technology infrastructure and activities.

Cyber insurance is a fairly new concept. The first stand-alone cyber insurance policies appeared in the 1990s. Cyber insurance policies have evolved over the years, and are still evolving. The available coverage varies widely among different insurers. There is no standard policy, with each carrier writing its own policy.

In general, there are several types of cyber insurance policies available to business entities. These include, but are not limited to, cyber insurance policies with liability coverage, breach and event response coverage, regulatory coverage, extortion coverage, loss of income coverage, data replacement coverage, and deceptive fraud transfer coverage.