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 Iowa, as in many states, cyber insurance is designed to mitigate the risks associated with electronic business operations by providing coverage for various cyber events. This type of insurance typically covers the financial losses a business may suffer due to incidents like data breaches, malware, ransomware, and other cyber threats. It also often includes liability coverage for when a business's customers' personal information, such as credit card details and Social Security numbers, is compromised. While there is no specific state statute in Iowa that mandates businesses to carry cyber insurance, it is increasingly considered a prudent measure given the rise in cybercrime. Businesses in Iowa may choose to purchase cyber insurance policies to protect against the financial and reputational damage that can result from cyber attacks. It's important for businesses to work with an attorney and an insurance broker to understand the specific coverages, exclusions, and requirements of a cyber insurance policy to ensure it aligns with their risk profile and regulatory obligations.