What does "cyber insurance" cover?

The correct answer focuses on the purpose of cyber insurance, which is to provide financial protection against data breaches and cyber incidents. This type of insurance is designed to help organizations manage the costs associated with cyber-related risks, such as legal fees, notification expenses, credit monitoring for affected individuals, and even potential losses due to business interruption following a cyber incident.

Cyber insurance recognizes the complexities and financial repercussions that emerge from the increasing frequency and sophistication of cyber threats. By having coverage in place, organizations can mitigate the financial fallout that results from attacks such as ransomware, phishing, or any unauthorized access to confidential data. This type of policy is crucial for organizations that handle sensitive information, as it reinforces their risk management strategy and helps them recover more swiftly from cyber incidents.

Other options do not accurately represent the scope of cyber insurance. Some focus on aspects like training (investment in cybersecurity training), physical security (insurance for physical security of office spaces), or general risk coverage (general liability insurance for companies), which falls outside the specialized nature of cyber risk management. Cyber insurance uniquely addresses the financial implications arising from cyber threats, setting it apart from these other types of coverage.