Cybersecurity insurance, also referred to as cyber insurance or cyber liability insurance, is insurance that your business can buy to reduce risks to data loss. A cybersecurity insurance policy will transfer some risk to the insurance company for a fee. While all types of insurance have been around for decades, cybersecurity insurance is relatively new. Businesses that chose to buy cybersecurity insurance were early adopters. Given how cyber risks fluctuate, cybersecurity policies must change and adapt frequently. Underwriters have access to data that helps them calculate risk and set policy rates, premiums, and coverage. For cybersecurity insurance, it’s not that simple. This hurdle is because cybersecurity insurance is new, and the data is limited.