Definition - What does Cyber Insurance mean?
Cyber insurance is a policy that covers liability or loss for a business that uses the internet for its operations. It can provide legal assistance if the business faces a lawsuit or offer compensation for financial losses from technological crime like breach of data.
Insuranceopedia explains Cyber Insurance
While the improved ability to reach out to clients has undoubtedly been good for commerce, it has also brought about vulnerabilities that can endanger business owners who rely on it too much or rely on it without proper safeguards. In addition to the risk of robbery or burglary, organizations now face the hackers stealing financial records, credit card details, and other sensitive information.
Cyber insurance covers losses that result from these types of crime and even from technological collapse, such as data being erased as the result of a system failure. Help is either in the form of legal or technological assistance or monetary compensation.