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 Virginia, cyber insurance policies are designed to mitigate the risks associated with electronic business operations by covering the financial losses that can result from various cyber events. These policies typically address costs related to data breaches, malware, ransomware, and other forms of cyberattacks that compromise a business's or its customers' sensitive information. Virginia businesses may seek cyber insurance to protect against liabilities arising from the theft or exposure of PII such as credit card details, Social Security numbers, and health records. While Virginia does not mandate cyber insurance, state statutes require businesses to follow certain protocols in the event of a data breach, such as notifying affected individuals and, in some cases, state authorities. The specifics of cyber insurance coverage can vary widely among policies, and businesses are encouraged to consult with an attorney to understand the coverage options and regulatory requirements related to cyber risks.