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 Kansas, 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 information technology systems. These policies can also provide coverage for the costs associated with responding to a breach, such as notification expenses, credit monitoring services for affected individuals, and legal fees. It's important for businesses to carefully review the terms and coverage limits of a cyber insurance policy to ensure it aligns with their specific risks and needs. While there is no specific Kansas statute mandating cyber insurance, businesses that handle sensitive customer information may consider it essential to mitigate financial risks associated with data breaches and cyberattacks. Additionally, Kansas businesses must comply with federal laws such as the Health Insurance Portability and Accountability Act (HIPAA) for health records and the Gramm-Leach-Bliley Act (GLBA) for financial information, which may influence the need for cyber insurance coverage.