Your company is covered under a liability insurance policy, which provides various liability coverage for information security risks, including any physical damage of assets, hacking attacks, etc…

Risk transfer involves shifting the financial burden of a risk to another party, typically through insurance contracts or third-party agreements. By purchasing a liability insurance policy that covers physical damage, hacking attacks, and other information security incidents, the company moves the monetary consequence of those risks to the insurance provider rather than bearing them internally.

Risk acceptance means the organization acknowledges the risk and chooses to absorb any losses itself without taking protective action, which is the opposite of buying insurance.

Risk avoidance means eliminating the activity or asset that creates the risk entirely, such as shutting down a vulnerable system - not purchasing insurance to cover it.

Risk mitigation involves implementing controls to reduce the likelihood or impact of a risk, such as deploying firewalls or encryption, not transferring financial liability via an insurance policy.