Cyber Insurance

Cyber insurance is a type of insurance policy that provides financial protection against losses resulting from cyber attacks and data breaches. Coverage can include incident response costs, forensic investigation expenses, legal fees, notification costs, regulatory fines, business interruption losses, and ransom payments (though this is increasingly debated).

Cyber insurance doesn't replace good security — insurers increasingly require evidence of security controls (like MFA, endpoint protection, and backups) before issuing policies. Think of it as a financial safety net, not a security strategy.

Why It Matters

While not a CMMC requirement, cyber insurance provides financial protection for the costs associated with a breach — which can be devastating for small contractors. Importantly, meeting CMMC requirements often helps you qualify for better insurance terms and lower premiums.