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 help mitigate some, 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