Cybersecurity insurance, also known as cyber insurance, is a policy designed to help organizations manage the financial risks associated with cyberattacks, data breaches, and other digital threats. It typically covers costs such as data recovery, legal fees, regulatory fines, notification expenses, and sometimes even ransom payments. By transferring some of the financial burden to an insurer, businesses can better recover from cyber incidents and maintain their operations with less disruption. Cybersecurity insurance is an essential part of modern risk management strategies, especially as cyber threats become more frequent and sophisticated.