Cyber insurance covers losses from cybersecurity incidents: ransom payments, forensics costs, legal fees, breach notification costs, and sometimes business interruption losses. Quality of coverage varies enormously by policy — some policies have ransomware sublimits, nation-state exclusions, and coverage conditions that can result in denied claims.

Yes, you need it — but the policy is only as good as the controls you actually have in place. Carriers audit controls post-incident. If you attested to having MFA and you didn't, they have grounds to deny your claim. Our Cyber Insurance Readiness Checklist (free download) walks through exactly what carriers require.