Loss insurance for data breaches, also known as cyber insurance, is a type of insurance that provides coverage for businesses in the event of a data breach. This type of insurance can help businesses cover the costs of notifying affected individuals, investigating the breach, and providing credit monitoring services. It can also help businesses cover the costs of legal liability in the event of a lawsuit.
Data breaches are becoming increasingly common, and the cost of a breach can be significant. According to a study by the Ponemon Institute, the average cost of a data breach in 2023 was $4.35 million. This cost includes the cost of lost business, legal liability, and reputational damage.
