Cyberinsurance is insurance designed to help cover costs linked to cyber incidents, such as incident response, data recovery, legal support, notification, and some business interruption losses. It does not prevent attacks, and policy terms usually define what is covered, what security controls are required, and when a claim can be denied.
In cyber security, cyberinsurance matters because it changes how organizations plan for risk. Attackers often target reachable systems, weak passwords, exposed email accounts, or unpatched software; a policy may reduce financial damage after such an event, but only if the business also has access control, backup, monitoring, and recovery plans. Defenders and insurers both look for evidence of basic hygiene, because weak security can increase premiums or limit coverage. Cyberinsurance is best treated as a financial backstop, not a replacement for security controls.