Cyber insurance can help a business recover financially after certain types of security incidents, but it does not replace good security.
Insurance policies may have requirements related to MFA, backups, endpoint protection, employee training, and other controls.
If a business states that these protections are in place, they need to actually be in place.
Cyber insurance may help with legal costs, incident response, notification expenses, and some financial losses, depending on the policy.
However, it cannot restore customer trust automatically, undo downtime, or prevent a stolen account from being abused.
Security and insurance should support each other.
A business should reduce risk first, understand what its policy covers, and keep documentation showing that required controls are active.
The best outcome is still avoiding the incident whenever possible.