Cybersecurity insurance is crucial for companies as it provides financial protection against cyber incidents, such as data breaches and ransomware attacks. By having a policy in place, businesses can mitigate the impacts of significant financial losses associated with incident recovery, legal fees, and reputational damage. Additionally, insurers often provide resources and assessments to help businesses bolster their cyber defenses. The presence of cybersecurity insurance can also enhance a company’s credibility with clients and partners, indicating a proactive approach towards cybersecurity preparedness.