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 Mississippi, cyber insurance is not governed by a specific set of state statutes but is regulated under the broader umbrella of insurance law. Businesses in Mississippi can purchase cyber insurance policies to protect against losses and liabilities resulting from cyber events such as data breaches, malware, ransomware, and other IT security incidents. These policies typically cover expenses related to the response and recovery from such incidents, including legal fees, notification costs, credit monitoring for affected individuals, and regulatory fines. Additionally, cyber insurance may provide coverage for third-party claims arising from a breach of sensitive customer information, including PII. Insurers offering cyber insurance in Mississippi must comply with state insurance regulations, which are enforced by the Mississippi Insurance Department. These regulations ensure that insurance providers operate within the legal framework, maintain solvency, and offer policies that are fair and reasonable to consumers. It is important for businesses to work with an attorney to understand the specific terms, conditions, and exclusions of any cyber insurance policy they consider, to ensure adequate coverage for their particular risks.