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 Montana, 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 or its customers' sensitive information. Montana businesses can acquire cyber insurance policies to protect against the financial and legal repercussions of such incidents. While there is no specific state statute in Montana that mandates cyber insurance, businesses that handle personal information are subject to the Montana Data Security Act (Title 30, Chapter 14, Part 17, MCA), which requires them to implement reasonable security procedures and practices. If a business experiences a data breach, it must comply with notification requirements. Cyber insurance can help cover the costs associated with these legal obligations, such as notification expenses, credit monitoring services for affected individuals, and legal defense costs in the event of a lawsuit. It's important for businesses to work with an attorney to understand the specific coverages and exclusions of a cyber insurance policy and ensure it aligns with their risk profile and regulatory requirements.