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 Delaware, businesses can obtain cyber insurance to protect against losses and liabilities resulting from cyber events such as data breaches, malware, ransomware, and other IT security incidents. Cyber insurance policies typically cover expenses related to the immediate response to a cyber incident, including investigation, data recovery, legal fees, and notification costs. Additionally, these policies may cover regulatory fines, litigation expenses, and costs associated with restoring the reputation of the business. Delaware's specific regulations regarding cyber insurance are not prescriptive, meaning they do not mandate specific coverage details; instead, coverage details are generally determined by the insurance market and the needs of the business. However, Delaware does have laws that require businesses to protect personal information and to notify individuals affected by a data breach, such as the Delaware Computer Security Breaches Act (Title 6, Chapter 12B of the Delaware Code). This act outlines the obligations of businesses in the event of a data breach, including timely notification to affected Delaware residents. Cyber insurance can help businesses comply with these legal requirements and mitigate the financial impact of cyber events.