What is cyber insurance?

Cyber insurance is specifically designed to protect businesses from the financial repercussions of cyberattacks and data breaches. This type of insurance often covers a range of services and expenses that may arise following a cyber incident, such as data recovery, legal fees, notification costs to affected individuals, and potential business interruption losses.

For businesses that increasingly rely on digital systems, cyber insurance has become essential as it helps mitigate the risks associated with the growing number of cyber threats in our technologically driven world. It recognizes the unique challenges presented by the digital landscape, where traditional insurance policies may not effectively address the nuances of cyber risks.

The other options focus on different types of coverage that do not pertain to the specific threats and losses associated with cyber incidents. For instance, coverage related to physical theft and burglary addresses tangible property risks, while policies for internal corporate fraud pertain to financial misconduct within an organization. Home insurance that focuses on fire damage is also unrelated to the cyber threats businesses face in the digital realm. Thus, only the first option accurately encompasses the essence of cyber insurance.