Cyber insurance is a product used to protect business and individual users from internet based risks which is most commonly excluded from traditional general liability products. This kind of coverage may include cover against losses such as destruction of data, theft, extortion and hacking.
Because the cyber insurance market in many countries is relatively small compared to other insurance products it's overall impact on emerging cyber threats is difficult to quantify. As the impact to people and businesses from cyber threats is also relatively broad when compared to the scope of protection provided by insurance products, insurance companies continue to develop their services.
This type of insurance is constantly being developed and changed and is now often being bought together with existing IT security services.
Cyber insurance would provide cover for businesses and help them to return to normal after a cyber security attack and would reduce the need for assistance from the government.
Cyber insurance distributes the risk to be distributed fairly, which means that companies with a higher risk of cyber-attacks will be paying a higher premium than a low risk business.