Cyber insurance costs depend on several risk factors that vary from business to business. For example, some annual policies might cost around $500, while others cost $5,000 or more. Learn which factors affect your rate so you can better control your costs and still have adequate coverage.
Cost factors
Your cyber insurance cost depends on a variety of factors, including:
Coverage needs and limits
Your cyber insurance cost will increase if coverage limits are increased. For example, a $3 million cyber insurance policy will cost more than a $25,000 cyber insurance policy.
Don't worry if you have a partner contract that requires higher coverage limits. You can customize other coverages on your policy, so you're only paying for what you need.
Data access
Your cyber cost is influenced by who has access to your systems and data. For example, hiring a third-party partner for IT or website maintenance might put your business at more risk than hiring an in-house employee. Additionally, limiting access to only the necessary employees, partners and customers can help minimize your cyber risk.
Network security
Storing sensitive information on an unsecured network increases your risk for cyber threats like data compromise, computer attacks and electronic extortion. You might have a lower cyber insurance cost if you can show that you work on a secure network. This can include installing antivirus software, using network firewalls and updating passwords regularly.
Profession
Accountants, medical offices and IT companies are some of the many professions known for collecting and storing large amounts of data. These types of professions typically pay more for cyber insurance because it usually costs more to recover from a cyber incident involving large amounts of sensitive information.
Claims history
Expect your cyber insurance cost to be higher if you've had a cyber claim in the recent past. A business with past claims is considered to have a greater risk of a future breach than a business without a previous claim.
Why buy cyber insurance?
You should buy cyber insurance if you electronically store or process any sensitive information or data. Cyber criminals target businesses of all sizes and without notice. It's best to be prepared.
Of course, only you can decide if cyber insurance is worth it. Just remember, you can customize your cyber policy to only cover what you need and can afford.
Let us help get you started. Call us and a licensed insurance professional can answer your questions and help you find cyber coverage that you're comfortable with. You can also start a quote online.
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FAQs
For small businesses, annual cyber insurance premiums can range from $1,000 to $7,500. The median cost of a cybersecurity incident in a small business (less than 50 employees) is $8,000 to $12,000 but could hit $300,000.
How much does it cost to get a cyber security policy? ›
Typical cybersecurity insurance costs for Insureon customers
While Insureon's small business customers pay an average of $145 monthly for a cyber insurance policy, 38% pay less than $100 per month and 33% pay between $100 and $200 per month.
Is cyber protection insurance worth it? ›
Today, the average cost of cyber claims is substantial, far exceeding the average cost of cyber premiums. And considering the proactive and reactive services on offer, it's clear that cyber insurance is more than worth the money.
How are cyber insurance premiums calculated? ›
Cyber insurance costs are calculated based on a business's risk of a breach. The higher the likelihood that an organization will be targeted and affected by a cyberattack, the higher the premiums will be on that organization's cyber insurance policy.
Can I buy cyber insurance? ›
You can buy cyber risk insurance directly from an insurer or from a broker. You can find brokers specialising in cyber insurance through the British Insurance Brokers' Association (BIBA).
Can individuals buy cyber insurance? ›
Personal cyber insurance covers individuals for their personal online security risks and financial loss due to cybercrime. Cybercrimes and risks include: Online account takeover or compromise. Expenses incurred or financial loss due to identity theft or social engineering scams.
How do you qualify for cyber insurance? ›
Every provider will likely conduct a risk assessment to determine if you qualify for cyber insurance. The process will help them to determine how much coverage they can offer you, and what you'll need to pay for it.
How much does cybersecurity cost per month? ›
How Much Do Managed Cybersecurity Services Cost? Minimum costs for outsourced cybersecurity services start around $2,000 - $3,500 per month and go up from there. On a per-user basis, that breaks down to a range between $195 and $350 per user, including support and maintenance.
How common is cyber insurance? ›
The global cyber insurance market tripled in volume in the last five years, expanding to gross direct premiums of around USD 13 billion in 2022, according to the Swiss Re Institute (SRI). In just two years, the market has seen significant rate increases and re-underwriting to restore profitability.
What isn t covered by cyber insurance? ›
Potential future lost profits
But they won't cover profits lost after an incident as a direct or indirect result. Devaluation of affected data, a company's diminished market share, profits lost due to reputation damage—most policies exclude such potential losses.
The amount of cyber liability coverage you need depends on your business, your industry, and the type of personal information or customer data you handle. If your company stores personally identifiable information (PII) on its computers, you could face expensive lawsuits and government fines over stolen data.
Why is it difficult to get cyber insurance? ›
Demand, losses, and premiums are all on the rise
The demand for cyber insurance coverage is skyrocketing. At the same time, insurance providers' losses are growing. High demand in combination with high payouts lead to increased premiums. Businesses report premium hikes of 50% and even 100% year over year.
Why is cyber insurance so expensive? ›
There's a simple and a complicated answer to this question. You could probably figure out the simple answer on your own: cyber insurance costs more because of the huge rise in data breaches and hacks in the post-COVID world.
Does cyber insurance pay out? ›
Cyber insurance covers the liability actions that might be brought against you, arising out of a cyber event (third party loss), such as investigation and defence costs, civil damages, compensation payments to affected parties.
What does cyber insurance typically cover? ›
A cyber insurance policy helps an organization pay for any financial losses they may incur in the event of a cyberattack or data breach. It also helps them cover any costs related to the remediation process, such as paying for the investigation, crisis communication, legal services, and refunds to customers.
How much does cybercrime cost per year? ›
The Cost of Cybercrime in the U.S
A 2021 FBI report says that out of 847,376 cybercrime cases reported in 2021, the losses amounted to nearly $7 billion. Among the received cases, business e-mail compromise (BEC) schemes, ransomware, and cryptocurrency scams were among the reported incidents.
How much is cyber premium? ›
Key Features of HDFC ERGO Cyber Insurance Policy
| Key Features | Benefits |
|---|
| Affordable Premium | Plan starting at Rs 2/day*. |
| Identity Theft | Coverage for financial losses due to misuse of personal information on the internet. |
| Policy Period | 1 year |
| Sum Insured | ₹10,000 to ₹5Cr |
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