Cyber insurance, also known as cyber liability insurance, is a type of insurance that provides financial protection against losses resulting from cyber incidents such as data breaches, ransomware attacks, and other cybersecurity threats. It transfers the financial liability of cybersecurity events from the policyholder to the insurer by covering direct costs arising from cyber events, third-party claims, and assistance with regulatory compliance. This insurance is essential for businesses to mitigate risks associated with their information technology infrastructure and digital operations.