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 Dakota, 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 or its customers' sensitive information. The specific coverage details can vary widely between policies, so it's important for businesses to carefully review what is included in their cyber insurance plan. North Dakota businesses holding personal information are also subject to state laws regarding data breach notifications. Under North Dakota Century Code Section 51-30-01, businesses must disclose any breach of the security system to any resident whose personal information was, or is reasonably believed to have been, acquired by an unauthorized person. This disclosure must be made without unreasonable delay. Cyber insurance can help businesses manage the financial impact of these legal requirements and the costs associated with a data breach, such as legal fees, notification costs, and credit monitoring services for affected individuals.