First published February 4, 2020. Refreshed and expanded October 29, 2025.
Cybersecurity insurance is a powerful tool in today’s evolving threat landscape. Properly selected, it can help an organization bounce back from a devastating cyberattack.
But what’s included in cybersecurity insurance?
How do you qualify for it?
We’ve got all the answers here.
Key takeaways:
- Cybersecurity insurance protects organizations from financial losses incurred by cybersecurity attacks.
- Cybersecurity insurance is far more affordable than the cost of a data breach (average $4.4M in 2025).
- Companies may need to take steps to qualify for cybersecurity insurance.
What is cybersecurity insurance?
Cybersecurity insurance, also called cyber liability insurance, is a type of insurance coverage that protects businesses from financial losses caused by cybersecurity incidents. This coverage is typically obtained through an insurance provider who will audit your organization’s cybersecurity posture to see if you qualify. Learn more here: 9 Cybersecurity Insurance Requirements.
Why choose cybersecurity insurance?
Why choose cybersecurity insurance? Because no one can fully prevent data breaches. Most organizations don’t budget for the cost of incident response, which can be devastating to an organization’s finances, operations, and customer relationships. A strong cyber insurance policy helps cover incident remediation costs so an organization can rebuild from an attack.
Should my business invest in cyber insurance?
Absolutely. Cyber insurance is incredibly beneficial to companies that have not budgeted for the remediation of a cyberattack. According to IBM, the average cost of a data breach in 2025 was $4.4 million. For many organizations, that number is unthinkable.
Does cyber insurance cover data breach lawsuits and legal fees?
Yes, most cyber insurance policies cover things such as legal fees and settlement costs, as long as your company wasn’t negligent. The exact parameters of coverage will depend on your policy and your provider’s requirements.
Typically, cyber insurance will not cover losses indirectly caused by a data breach or cyberattack.
How can I make cybersecurity insurance worth the expense?
The key piece to the puzzle to ensure full use of your insurance is log management. There are many platforms that allow you to collect this data. Properly captured and interpreted, log data is a tool that you can use to support your claim of a breach to your insurance provider. It’s an essential part of managed cybersecurity services.
We’ve seen that most claims from a breach won’t pay out if you don’t have detailed log information. The insurance companies want that data to see what happened before, during, and after the breach to validate the claim. Without log management, it’s hard to verify any of this information. And without that snapshot, regardless of what you’ve been paying for insurance, the claim you deserve won’t be paid.
Log management can be expensive depending on your compliance needs and data retention required by the insurance provider. However, many managed cybersecurity service providers, like Corsica Technologies, offer this service as a value add. Any of our experts here at Corsica and we would be glad to help guide you on your IT journey.
Need to prepare your company for cybersecurity insurance?
Reach out to schedule a consultation with our security specialists.
