Cyber insurance responds to data breaches, network security incidents, and the business interruption that follows. For a device manufacturer the exposure has two halves: the company's own systems, and the connected devices it has placed in the field.
That second half is what separates device cyber from generic technology cyber. A vulnerability in a connected device can produce a regulatory response, a field correction, and in some cases a claim involving patient harm. This page covers what the policy responds to, where device cyber differs from standard cyber, and what underwriters now expect from a manufacturer.
What Cyber Insurance Covers
A cyber policy typically funds breach response: forensics, legal counsel, notification, credit monitoring where required, and restoration of data and systems. It also responds to business interruption when an incident stops operations, and to extortion events.
Most forms include some regulatory defense and penalty coverage. For a device company that handles protected health information or operates in regulated environments, that section deserves attention, because the size of the sub-limit rarely matches the scale of a real regulatory response.
Where Device Cyber Differs From Standard Cyber
Most cyber policies were written around data and network events, and many exclude bodily injury. A connected device that harms a patient through a security failure can fall into the space between a cyber policy that excludes bodily injury and a products liability policy that was not drafted with software in mind.
Closing that gap is a deliberate exercise. It means reading the cyber form and the products form side by side, finding the line where a device compromise causing injury would fall, and confirming that one of them clearly answers it.
What Underwriters Expect From Manufacturers
Underwriting questions have become specific to devices. Expect to be asked for a software bill of materials, a postmarket vulnerability management process, a coordinated disclosure policy, and a patch cadence, all of which now sit inside FDA cybersecurity expectations for connected devices.
Enterprise controls still matter too. Multi-factor authentication, network segmentation, backup and recovery testing, and a documented incident response plan are the baseline, and a company that cannot evidence them is harder to place on competitive terms.
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