This paper provides an overview of the components of cyber insurance, discusses the role of the government, and examines specific implications to the Department of Defense. Data breaches involving significant personal information losses and financial impacts are becoming increasingly common. Increasingly, companies are being held liable for these losses, which have financial implications for customers and business partners or result in the loss of private information. Claims of hundreds of millions of dollars are being amassed depending on the type and size of the breach. As a result, the insurance industry is experiencing a sharp increase in demand for cyber insurance offerings to businesses.