What does cyber insurance primarily protect businesses against?

Cyber insurance primarily protects businesses against financial loss resulting from cyber threats. This type of insurance is designed to cover various risks associated with cyber incidents, such as data breaches, cyberattacks, and other digital threats. By providing financial support for costs related to these incidents, such as legal fees, notification costs, and potential litigation resulting from stolen or compromised information, cyber insurance helps businesses manage the financial impact of evolving cyber risks.

In contrast, natural disasters, property damage from accidents, and employee injuries fall outside the scope of cyber insurance, as these risks are typically associated with different types of insurance coverage, such as property or general liability insurance. Cyber insurance specifically addresses the unique challenges and financial implications that arise from activities and incidents in the digital space, making it a crucial component of risk management for businesses operating in today's technology-driven environment.