• Sikha Haritwal

Cybersecurity insurance, commonly referred to as cyber insurance, serves as a critical product for businesses to mitigate risks associated with cyber crime activities such as cyberattacks and data breaches. This manuscript explores the definition, importance, functionality, coverage areas, exclusions, and broader implications of cyber insurance based on detailed examinations of its components. It discusses how cyber insurance operates similarly to traditional insurance, covering first-party and third-party losses, and emphasizes its role in financial protection, legal support, and remediation following cyber incidents. Key risks covered include customer notifications, data recovery, system damage repair, ransom demands, and attack remediation, while exclusions encompass poor security processes, prior breaches, human error, insider attacks, preexisting vulnerabilities, and technology system improvements. The manuscript highlights that cyber insurance is not a substitute for robust cyber defense strategies and outlines steps to reduce cyber risk through assessment, implementation, and insurance procurement. Benefits such as forensic support, coverage for data breaches and cyber extortion, affordability, and protection against various cyber threats are detailed. Requirements for obtaining cyber insurance, including multi-factor authentication, cybersecurity training, data backups, identity access management, and data classification, are examined. The discussion extends to why cyber insurance costs are justified, factors influencing costs, average pricing, market dynamics, and major loss drivers like ransomware, business email compromise, data breaches, and supply chain vulnerabilities. This comprehensive overview underscores the necessity of integrating cyber insurance with proactive cybersecurity measures to enhance organizational resilience in a digitized economy.

Cyber insurance, cybersecurity insurance, data breach, cyberattack, ransomware, cyber extortion, multi-factor authentication, data recovery, business interruption, cyber risk management, cyber defense, insurance exclusions, cyber insurance requirements, cyber insurance costs, cyber threat landscape, supply chain vulnerabilities, business email compromise, forensic support, cyber insurance market, governmental cyber protection.

"Cyber Insurance as a Cornerstone of Enterprise Risk Management", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 10, page no.a509-a521, October-2025, Available :http://www.jetir.org/papers/JETIR2510064.pdf

"Cyber Insurance as a Cornerstone of Enterprise Risk Management", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 10, page no. ppa509-a521, October-2025, Available at : http://www.jetir.org/papers/JETIR2510064.pdf