--- title: "What is cyber insurance? A plain answer · Syba" description: "Cyber insurance pays covered losses after ransomware, online fraud, identity theft or a data breach. What it covers, who buys it and what it does not do." canonical: https://sybainsurance.com/guides/what-is-cyber-insurance --- Guides # What is cyber insurance? Cyber insurance is a policy that pays for covered losses after a cyber incident such as ransomware, online fraud, identity theft or a data breach. Depending on the wording it can cover response costs, lost income, legal fees and extortion. It softens the financial hit; it does not stop an attack. Personal versions cover households. [See pricing](https://sybainsurance.com/pricing) [Book a call](https://calendly.com/sybabrigitte/30min) ## What does cyber insurance pay for? Cyber insurance pays for the money side of a cyber incident, up to the limit and under the terms of the policy. The National Cyber Security Centre (2020) describes it as help for an organisation to get back on its feet when something cyber-related goes wrong, including minimising disruption, financial protection during an incident and help with legal and regulatory actions afterwards. Policies split losses in two groups. Own-loss cover pays for what the insured person or company loses directly. Liability cover pays when someone else claims against the insured because of a cyber event. The two groups of loss a cyber policy can cover Group | What it pays for | Example Own losses | Your own response costs, data recovery, lost income and extortion | Ransomware locks a computer and a demand follows Liability | A claim against you, and the legal cost of defending it | A privacy claim after a breach in your household or company ## Who buys cyber insurance? Mostly companies today. The UK government’s Cyber Security Breaches Survey (Department for Science, Innovation and Technology, 2025) found that 45% of businesses reported being insured against cyber security risks in some way, and that 62% of small and 65% of medium businesses were. Just 7% of businesses held a policy written specifically for cyber risk; the rest had it as part of a wider policy. Households are the newer group. A personal cyber policy covers a person and the people they live with against the same kinds of events, at a size that fits a home. ## Why do people buy it? Because the losses are real and common. The FBI Internet Crime Complaint Center (2026) received 1,008,597 complaints in 2025 and recorded $20.877 billion in reported losses. Those are the cases people reported to one US agency, so they show the scale rather than the full total. ## Does cyber insurance stop an attack? No. The National Cyber Security Centre (2020) is direct about it: cyber insurance will not solve every security issue and will not prevent a breach or attack. Insurers often ask about your security habits before they cover you, and some policies make cover depend on controls staying in place. That is why Syba pairs its personal cyber insurance with a 24/7 cyber team, a security app and training. The insurance pays; the service lowers the odds you need it. ## How do you compare cyber policies? Read five things before you buy. The same questions work for a household and for a company. - The limit: the most the policy pays for one event or one year. - The covered events: ransomware, fraud, identity theft, data recovery, liability. - The exclusions: what the policy says it will not pay for. - The conditions: what must be in place for a claim to be paid or the policy renewed. - The help: who you call, and whether a person works the case with you. ## Questions people ask next - ### Is cyber insurance the same as identity theft insurance? No. Identity theft insurance covers one kind of event. Cyber insurance is broader and also responds to ransomware, online fraud, data recovery and, on some policies, liability. Syba includes identity theft cover inside every plan. - ### Does home insurance already cover cyber losses? Sometimes in part. The National Cyber Security Centre (2020) advises checking whether existing policies, such as property or business interruption cover, include some cyber cover or exclude it, and reading the policy or asking the insurer or broker. - ### What does personal cyber insurance cover? Syba plans cover identity theft, ransomware and extortion, online fraud and cyber crime, cyberbullying with counseling, and cyber breach events with data recovery. Higher plans add liability and cryptocurrency cover. Each line responds under the terms of the issued policy. - ### Will cyber insurance repay money I sent a scammer myself? Not by default. A payment you authorised yourself is usually outside cover. Read the fraud wording of any policy, and ask what counts as a covered event before you buy. - ### How do I get cyber insurance? For a household, choose a plan on the Syba pricing page and complete the quote. For a company, ask for a quote through a broker or directly; company cover is priced per company, not from a list. ## Sources Every figure on this page names its publisher and year. Reviewed September 30, 2026. - [Cyber insurance guidance](https://www.ncsc.gov.uk/guidance/cyber-insurance-guidance) National Cyber Security Centre (UK), 2020 - [Cyber security breaches survey 2025](https://www.gov.uk/government/statistics/cyber-security-breaches-survey-2025/cyber-security-breaches-survey-2025) UK Department for Science, Innovation and Technology, 2025 - [2025 Internet Crime Report](https://www.ic3.gov/AnnualReport/Reports/2025_IC3Report.pdf) FBI Internet Crime Complaint Center (IC3), 2026 ## Go deeper - ### [Personal cyber insurance](https://sybainsurance.com/personal-cyber-insurance) What Syba’s household cover pays for and who it is for. - ### [What Personal Guard covers](https://sybainsurance.com/coverage) Each coverage line with a covered and a not-covered example. - ### [Pricing](https://sybainsurance.com/pricing) Every plan with its monthly price and limit. - ### [How claims work](https://sybainsurance.com/how-claims-work) What happens from the report to the written outcome. ## See the plans and the price Pick a plan, or book a call with the team. [See pricing](https://sybainsurance.com/pricing) [Book a call](https://calendly.com/sybabrigitte/30min) Financial cover is subject to eligibility, jurisdictional availability and the terms of the issued policy. The exact carrier, broker, limits, terms and exclusions are stated in your quote and policy documents. Syba provides the membership, monitoring and response service and does not solicit insurance. European insurance enquiries: customer.service@syba.io. Prices shown are in USD and are indicative. Final premium, coverage limits and eligibility are determined at the time of binding and vary by jurisdiction. Plans and pricing may change. You may cancel any month with a prorated refund.