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 Utah, as in other states, businesses can obtain 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, legal fees, and regulatory fines. Utah businesses holding personal information are also subject to the Utah Protection of Personal Information Act, which requires them to implement and maintain reasonable procedures to prevent personal information from unauthorized access, destruction, use, modification, or disclosure. In the event of a data breach, Utah law mandates that affected businesses provide timely notification to the individuals whose personal information has been compromised. Cyber insurance can be an important tool for businesses to mitigate the financial impact of such events and ensure compliance with legal obligations regarding data protection.