Cyber Insurance vs. Data Breach Insurance: What’s the Difference?

The labels are not standardized enough to establish equivalent protection. FTC guidance describes cyber first-party coverage for breach investigation, notification, data recovery, and interruption, plus third-party liability for claims. A product marketed as data-breach insurance may focus on response costs, while a broader cyber form may add network interruption, extortion, or liability sections. The contract determines the scope.

Compare the insuring agreements rather than relying on the product title. Look for security and privacy liability, response services, lost income, data restoration, vendor incidents, extortion, fraud, and regulatory proceedings. Check limits and sublimits, waiting periods, retroactive dates, consent rules, exclusions, and whether response costs are available before a claim is made. Ask the insurer to explain any protection one quote includes that the other omits.