Why is cybersecurity insurance considered remedial?

Cybersecurity insurance is considered remedial primarily because it is designed to provide financial relief and assistance after a security incident, such as a data breach or cyberattack has occurred. This type of insurance helps organizations handle the aftermath of these incidents by covering costs related to recovery, legal fees, notification of affected individuals, and potential fines. The focus is on mitigating the damage once a breach has already taken place.

While it is beneficial to understand threats and risks as well as implementing preventive measures, which are vital components of an overall cybersecurity strategy, these aspects do not define the remedial nature of cybersecurity insurance. The essential characteristic of this insurance is its role in responding to and alleviating the consequences of cyber incidents rather than preventing them from occurring in the first place. Thus, the emphasis on providing immediate support and relief after a catastrophe aligns with the classification of insurance as a remedial tool.