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 Mexico, businesses can obtain cyber insurance to protect against losses and liabilities resulting from cyber events such as data breaches, malware, ransomware, and other IT security incidents. Cyber insurance policies typically cover expenses related to the immediate response to a cyber incident, including investigation, data recovery, legal fees, and notification costs. Additionally, these policies may cover regulatory fines, litigation expenses, and the costs of restoring the reputation of the business. New Mexico has specific data breach notification laws that require businesses to notify affected individuals within a certain timeframe if their personal information is compromised. This is outlined in the New Mexico Data Breach Notification Act (2017), which mandates that businesses implement reasonable security procedures and practices to protect PII, and provide notice to affected individuals no later than 45 days after discovering the security breach. Cyber insurance can be a critical component in a business's risk management strategy, helping to mitigate the financial impact of cyber events that compromise customer PII or disrupt business operations.