Insurance coverage for losses and liabilities arising from cyber incidents and data breaches.
Cyber insurance provides financial protection against cyber incident costs—breach response expenses, business interruption losses, liability claims, regulatory fines, and ransomware payments (where legal and appropriate). Policies vary significantly in coverage, exclusions, and requirements. Insurers increasingly require security controls (MFA, backups, EDR) as conditions of coverage. Cyber insurance is risk transfer, not risk management—it doesn't prevent incidents.
Why It Matters
The DSC Perspective:
Cyber insurance provides financial protection when incidents occur. Understand policy coverage and exclusions—not all costs may be covered. Insurance requirements often drive security improvements. Don't rely on insurance as your security strategy.