Cybersecurity insurance is a type of insurance that helps companies manage IT security risks. It covers financial losses, damages, and liabilities arising from cyber-attacks, data breaches and invasions of privacy.

In the event of an IT security breach, insurance can cover the costs of data restoration, notification of affected parties, crisis management or recovery of financial losses incurred. This coverage is often required by companies storing sensitive data, such as personal, financial or medical information, or those operating a website. Cybersecurity insurance can help protect companies against significant financial costs and reduce cybersecurity risks.