Cyber insurance protects a business against losses caused by attacks on computer systems or data.
Cyber policies can cover first-party costs, such as forensic investigation, data restoration, business interruption, notification, and public-relations work. They may also cover third-party liability when a breach leads to claims from customers, partners, or regulators, subject to the policy’s wording and exclusions.
The market expanded as businesses became more dependent on networked systems and as ransomware, data breaches, and service interruptions became major operational risks. Insurers often require security controls, incident-response plans, and detailed applications before offering coverage.
Cyber insurance is not a guarantee against every digital loss. Policies may exclude war, infrastructure failures, known vulnerabilities, or losses that fall outside defined security and notification conditions. Coverage varies substantially between insurers.