Cybersecurity insurance has become essential but many businesses remain confused. First-party coverage: data breach response costs, business interruption, data restoration, cyber extortion payments. Third-party coverage: claims from customers or regulators. Exclusions: pre-existing breaches, nation-state attacks, failures to maintain minimum security standards. Insurers increasingly demand: MFA on all privileged accounts, EDR, regular vulnerability scanning, documented incident response plans, and 3-2-1 backup with offline copies. Average premiums increased 74% in 2025. Our guide walks through application process, required documentation, key policy terms, and how to build a security program that satisfies insurer requirements.