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 Maine, cyber insurance is designed to mitigate the risks associated with electronic business operations by providing coverage for various types of cyber events. This includes data breaches, malware, ransomware, and other forms of cyberattacks that can compromise a business's data or disrupt its operations. Maine businesses may seek cyber insurance policies to protect against the financial and legal repercussions of such incidents, especially considering the state's regulations on data privacy and breach notifications. Under Maine law, businesses are required to notify affected individuals without unreasonable delay if their personal information has been compromised in a security breach. The state's statutes also provide definitions and requirements for the protection of personal information, which can influence the coverage and responsibilities outlined in cyber insurance policies. Businesses must ensure that their cyber insurance coverage aligns with these legal obligations to effectively manage their cyber risk and maintain compliance with state regulations.