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 New Hampshire, cyber insurance is designed to mitigate the risks associated with electronic business operations by providing coverage for various cyber events. These events can range from data breaches and malware attacks to more sophisticated cyber threats like ransomware and phishing schemes. The coverage typically extends to both the losses experienced by the business itself and the liability arising from compromised customer information, including PII such as credit card details and Social Security numbers. While there is no specific state statute in New Hampshire that mandates businesses to carry cyber insurance, the state does have data breach notification laws under RSA 359-C:20 that require businesses to notify affected individuals in the event of a security breach involving personal information. As cyber threats evolve, businesses in New Hampshire may consider cyber insurance as a critical component of their risk management strategy to protect against the financial and reputational damage resulting from cyber incidents.