The article discusses that data breach insurance can mitigate the financial impacts of a data breach on a company by covering its losses. It is a specific type of cyber security insurance that covers situations where data is lost or stolen. The article explains that the coverage can include both first-party and third-party provisions, such as “data breach investigation costs”, “hardware and software damage costs”, fines incurred by lost data, and legal costs for the individuals affected. Furthermore, the article advises that a company should purchase a policy depending on several factors, such as the location, the type of data collected, and whether other protections are in place. When choosing a policy, it's important to pay attention to the wording and stay up-to-date on policies and terms. As the cost of data breaches and security threats increase, data breach insurance is becoming an essential investment for businesses of all sizes.