What does cyber liability insurance cover?

Cyber liability covers the costs of responding to and defending against a data breach, ransomware attack, business email compromise, or other cyber incident. Standard coverage splits into two parts: first-party (your direct costs — forensic investigation, customer notification, credit monitoring, public relations, system restoration, ransom payments, business interruption) and third-party (defense costs and damages if customers, patients, or regulators sue or fine you over the breach). Modern policies also include pre-breach services: phishing simulations, dark-web monitoring, vulnerability scanning, and 24/7 incident response hotlines. For healthcare practices, the policy also responds to HIPAA breach-notification costs and OCR investigation defense.