Cyber insurance is a type of insurance that helps protect businesses and individuals from the financial impact of online threats like data breaches, cyberattacks, and hacking. If something goes wrong, it can cover the costs of recovering data, legal fees, informing customers, managing public relations, and even paying ransom in ransomware attacks. Cyber insurance helps businesses manage the risks of being online, providing financial support when they face cyber-related problems.

While cybersecurity insurance is not strictly required for compliance, consider the risks of being wholly financially liable for any and all security events (including third-party breaches that negatively impact your organization) carefully before choosing not to purchase a policy.