What does cyber insurance help organizations with?

Cyber insurance primarily assists organizations in mitigating financial losses that result from cyber incidents. This kind of insurance is designed to cover a range of costs associated with breaches, including expenses for data recovery, legal fees, notification costs for affected individuals, and public relations efforts to restore the organization's reputation. In the event of a cyber attack, organizations can face significant financial burdens, and having cyber insurance helps absorb some of these costs, allowing the business to recover more swiftly and effectively.

While protecting physical assets from theft and improving employee productivity are important aspects of overall risk management, they fall outside the primary focus of cyber insurance, which specifically targets issues related to digital risks. Similarly, while reducing operational costs can be a goal for many organizations, this is not something that cyber insurance directly provides; rather, it functions as a financial safety net in the face of cyber-related threats.