• Data breaches: This includes the unauthorized access, use, disclosure, disruption, modification, or destruction of confidential or personal data. 
  
   
• Cyber extortion: This covers the financial losses incurred when a business is targeted by cybercriminals demanding ransom or other payments. 
  
   
• Network security breaches: This covers the costs associated with responding to and recovering from a security incident that compromises a business’s network. 
  
   
• Legal defense costs: The policy may cover legal fees and expenses incurred in defending against lawsuits or regulatory actions arising from a cyber incident. 
  
   
• Reputational damage: Some policies may cover the costs of mitigating reputational damage that results from a cyber incident. 
  
   
• Business interruption: This covers the financial losses incurred when a cyber incident disrupts a business’s operations. 
  
   
• Data recovery costs: This covers the expenses incurred in restoring data and systems after a cyberattack. 

Cyberattacks are becoming increasingly frequent and sophisticated, posing a significant financial risk to businesses of all sizes. Cyber insurance can help businesses protect themselves from these risks by providing financial support in the event of a cyber incident. 

Examples of cyber incidents:

• Ransomware attacks: Malware that encrypts a business’s data and demands a ransom for its release. 
  
   
• Phishing attacks: Malicious emails designed to trick individuals into revealing sensitive information. 
  
   
• Data breaches: Unauthorized access to confidential or personal data. 
  
   
• Malware infections: The installation of malicious software on a business’s systems.