A ransomware attack can freeze operations and expose sensitive data in hours. Cyber insurance covers financial losses and liability arising from cyber incidents such as data breaches, ransomware, business interruption from system failure, and related notification and recovery costs.

First-party coverages reimburse the insured’s own costs for investigation, restoration, and lost income. Third-party coverages respond to claims by customers, regulators, or other affected parties. Policies typically require minimum security controls and may exclude war, infrastructure failure, or unencrypted data.

The market has grown rapidly as incidents multiply. Underwriting focuses on security posture, incident-response readiness, and industry sector. Claims often involve specialized forensic firms and legal counsel. Capacity and pricing remain volatile as insurers refine their understanding of aggregation and silent cyber exposures in other lines.

• Coverage for cyber incidents and data breaches
• Includes first-party costs and third-party liability
• Requires baseline security controls
• Market still evolving with incident experience