Cyber insurance is an important element for companies as it covers the damage and liability caused by a hack, which are usually excluded from traditional liability coverage. Stricter data privacy notification laws, government incentives, cloud adoption and the increase in high-profile hacks and data breaches have all contributed to the significant increase in the number of companies offering and buying cyber insurance. However, companies need to make sure they have the best technology in place to protect their information, before implementing a cyber insurance policy.