Cyber insurance is a contract through which you can transfer cyber risk to an insurance company. In other words, it's a way for someone else to bear the expense of technology turning against your business.
You can't transfer your total cost of cyber risk, but cyber insurance can cover quite a bit, including:
- Damages and defense costs from third-party suits
- Regulatory fines and expenses
- Forensic investigation costs
- Costs to provide privacy notifications and services to affected parties
- Reimbursement of lost income or stolen money resulting from a cyber attack
- Protection of your business' reputation