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 North Carolina, as in many other states, businesses can purchase 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 and sensitive data. The coverage can extend to costs associated with responding to a breach, such as notification expenses, credit monitoring services for affected individuals, and legal fees. Additionally, cyber insurance may cover regulatory fines and penalties that arise from data breaches involving customer PII. It's important for businesses to carefully review their cyber insurance policies to understand the specific types of cyber events that are covered, as well as any exclusions or limitations. Businesses should also be aware of North Carolina's data breach notification laws, which require businesses to notify affected individuals and, in certain circumstances, state authorities, when there is a breach of personal information. An attorney specializing in cyber law and insurance can provide guidance on the appropriate coverage for a business's specific risks and compliance with relevant state and federal regulations.