Cyber insurance is a special insurance policy that covers your business’ losses and liability for intrusions into your business’s computers, computer networks, software, payment processing, and other information technology (cyber events). Cyber events that may be covered by cyber insurance include data breaches, malware, ransomware, viruses, spyware, wire transfer fraud, phishing, denial-of-service (DoS) attacks, Trojans, adware, botnets, man-in-the-middle attacks, credit card web skimming, and others.

In addition to breaching a business’s own valuable information and processes, a data breach may target a business’s sensitive customer information, such as credit card numbers, account numbers, telephone numbers, mailing addresses, passwords, driver’s license numbers, Social Security numbers, health records, and other personally identifiable information (PII).

In Alaska, as in other states, businesses can obtain cyber insurance to protect against losses and liabilities resulting from cyber events. Cyber insurance policies typically cover a range of incidents, including data breaches, malware, ransomware, and other forms of cyberattacks that compromise a business's or its customers' sensitive information. The specific coverage details and the extent of protection will vary by policy and insurer. It's important for businesses to carefully review their cyber insurance policies to understand what is covered, including any exclusions or limitations. Additionally, businesses must comply with Alaska's breach notification laws, which require them to notify affected individuals in the event of a security breach involving personal information. This notification requirement is outlined in the Alaska Personal Information Protection Act (AS 45.48.010 et seq.), which also provides definitions of personal information and the circumstances under which a business must disclose a breach. Cyber insurance can be an important part of a business's risk management strategy, particularly as cyber threats continue to evolve.