How do cyber insurance policies address cyber terrorism?

Insurance providers address risks associated with acts of cyber terrorism or politically motivated attacks by offering specialized insurance policies known as cyber terrorism insurance or cyber risk insurance. These policies help businesses and organizations protect themselves financially against damages and losses resulting from cyber attacks with political or ideological motives. Insurance companies assess the potential risks and exposures of such attacks, tailor coverage to meet specific needs, and provide financial compensation in case of a cyber terrorism incident. Some insurers may also offer risk assessment, prevention measures, and incident response services to help policyholders manage and mitigate cyber terrorism risks effectively.