Do I Need Cyber Insurance?

Start by listing sensitive information, essential systems, payment flows, cloud services, and vendors that can access your data. Consider the likely cost of investigating an incident, notifying affected people, restoring data, handling interruption, and responding to claims. FTC guidance says businesses should assess whether cyber insurance is appropriate and consider both first-party costs and third-party claims.

A policy may be less useful than expected if its limits, waiting periods, exclusions, or required controls do not match your exposure. Estimate the loss your business could retain, then compare quotes for response services, covered events, dependent-system interruption, fraud, and liability. Confirm how existing property, crime, general-liability, and technology E&O policies address the same event so you can identify gaps or overlap.