Cyber Insurance Coverage Limits (2024)

Cyber insurance is a kind of insurance policy that covers your organization’s liability should a data breach occur.

Each year, hackers and cybercriminals find new and more complicated ways to breach company networks and compromise sensitive data. On average, 50% of all cyber-attacks are done on small and mid-sized businesses, with enterprises still experiencing around 130 security breaches per year per organization. The cost of these breaches is also rising each year. Often, data breaches can cause legal disputes to arise, which can go on for years, costing your organization significant amounts of time and money. In addition, cyber attacks can ruin your reputation. This is especially true in the case of companies that operate in industries that are based on trust, such as banking, insurance, or healthcare.

Fortunately, there are a number of ways to mitigate the risk of a cyber breach. One of them is to implement a comprehensive cyber risk management platform such as Trava. Trava was founded by a former FBI cyber crimes task force officer and a data backup software engineer to help secure small to midsized businesses from the threats of cyber attacks. Our platform makes it easy to assess the strength of your current security posture and provides mitigation tools to repair any vulnerabilities that have been identified. Instantly run application scans, phishing simulations, and dark web vulnerability scams with just a few clicks. Furthermore, you can always see exactly how many vulnerabilities you have and what actions you can take to reduce your current risk level. Finally, Trava offers something that most cybersecurity tools don’t. We provide access to insurance for the unexpected.

Although you can technically address every known risk, the risk of the unknown will always be present. Zero-day exploits, for example, are the name we give to the application vulnerabilities that exist as fixed flaws in a program that the developer doesn’t know about. These allow any attacker who understands the vulnerability to commit a breach. By definition, nobody knows where or when the next zero-day exploit will be discovered, making them almost impossible to defend against. Furthermore, other cyber risks, such as the insider threat, can be minimized with things like role-based access control and need-to-know policies but can never be completely addressed. That said, businesses are not left without options. It is precisely due to these unknown risks that cyber insurance has been developed.

Secure for the known, insure for the unknown

Your destination may be achieving compliance in industry certifications such as SOC2 or ISO27001, but it doesn’t stop there. With Trava, our modern tools can help you bridge the gap between where you are and where you want to be by giving you the control to assess your risk, repair the most vulnerable areas, and transfer risk through insurance.

Cyber Policies

How does cyber insurance work? Cyber policies are designed much like other liability policies. They cover you against a certain amount of financial losses in the event of a successful breach on your organization. Often, cyber insurance will provide financial assistance to help deal with legal fees resulting from incidents as well as costs associated with recovering data and repairing damaged computer systems. If your organization manages PII data and was breached, you are legally required in many states to notify each individual potentially involved. This can be another expensive result of a breach that cyber insurance for small businesses can help address. The most affordable way to find a great cyber policy is to rely on a high-quality cyber insurance broker to find the most affordable insurance to suit your needs.

Trava Security’s technology has many features that are highly beneficial for cyber brokers. We enable you to get an insurance quote for your clients in 5 minutes or less. Preparing your clients to renew their policies can be challenging. Trava gives you easy access to the insights you need to get your clients ready for renewal. Plus, we provide concrete data you can use to offer your clients just the right policies for them.

Cyber Liability Coverage

General liability is the policy many businesses have already invested in to mitigate risks associated with physical harm coming to their customers through their products or services. However, general liability does not cover cyber incidents or theft of customer data. In order to respond to cyber threats, you need cyber insurance. Cyber insurance liability coverage usually extends to a variety of costs that can arise when a breach occurs. These include the costs of investigations, legal defenses, and remediation or repair efforts.

Trava provides comprehensive cybersecurity solutions, one of which is robust insurance coverage to help you stay prepared and protected. Our insurance policies cover:

Stolen Funds
Lost Business Income
Breach Response
Ransom Payments
Computer Replacement

Some hackers breach organizations with the basic goal of stealing money. This is often more of a risk to financial institutions but can be a risk to any business. In addition to losses as a result of stolen funds and breach responses, ransomware can also be an expensive risk. In a ransomware attack, hackers take control of your systems and prevent you from regaining access. Their usual demand is for a ransom, with the threat of total data destruction at the end of a certain time limit. Frequent backups can help to mitigate this risk. However, you may not have a choice. In those cases, it helps to have cyber insurance that can cover this risk.

You might think that you are a small business who doesn’t need cyber insurance protection, but that is not necessarily the case. These days, small businesses have found themselves in the crosshairs of cyber criminals who view organizations like yours as a soft target. Reinforce your security posture, and don’t be a soft target by combining robust security measures with a comprehensive insurance policy. Trava enables you to keep your small business safe.

How Much Cyber Insurance Do I Need?

There are many types of cyber insurance. How much cyber liability coverage you will need will depend on a number of factors. This includes the industry you operate in and the kind of cyber risks you are exposed to. For example, if your business is a restaurant that deals with very little customer data, your cyber liability insurance cost will most likely be lower than another organization, such as a bank. Banks hold both financial and personal data, which can be far more expensive to manage in the event of a cyber breach. To learn more about how cyber insurance works, it may be helpful to look at a cyber insurance policy sample. There are many cyber liability claims examples that show how expensive cyber risks can be and why insurance is important. In one case, an organization was hacked, and Social Security numbers were stolen. The ensuing legal costs were hugely expensive. Professional liability insurance cyber coverage can fill in that unknown gap in your risk mitigation strategy.

It’s also important to remember that you can reduce the amount of cyber insurance you need by lowering your risk profile through mitigation efforts. By closing vulnerabilities and addressing any issues existing with your security, you can also lower your cyber security insurance costs. One of the best ways to achieve this is through a security platform such as the one provided by Trava Security. Our technology enables you to run risk assessment surveys across your entire organization based on the leading cyber security standards (including NIST CSF).

Cyber Insurance Coverage Checklist

One of the ways to identify how much cyber insurance coverage you need and learn more about cyber insurance, in general, is to look at a cyber insurance coverage checklist. In fact, the Federal Trade Commission (FTC) provides a helpful checklist for small businesses on this very topic. Here, you’ll find a series of answers to many of the questions surrounding this space, including “What is first-party coverage?”, “What is third-party coverage?” and “What should your cyber insurance policy cover?” A checklist like this can be a great way to break down the complex nature of cybersecurity and cyber insurance. Higher premiums and new cyber insurance requirements in 2022 make it even more important than ever to have a solid understanding of your risk profile and to have as much risk mitigated as possible. A cyber insurance PDF can help walk you through how cyber insurance policies help keep you protected. At Trava Security, we have designed a system that enables you to address your vulnerabilities and mitigate known threats while protecting you against unknown and unforeseen threats with the power of cyber insurance.

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FAQs

Cyber Insurance Coverage Limits? ›

Cyber liability coverage limits typically range between $500,000 and $5 million per occurrence. The deductible is the amount of loss that your business is responsible for in the event of a cyberattack that is covered by your policy.

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What is the limit on cyber insurance? ›

Most small businesses purchase a cyber liability insurance policy with a $1 million per-occurrence limit, a $1 million aggregate limit, and a $1,000 deductible.

What is cyber security threshold? ›

Definitions: Values used to establish concrete decision points and operational control limits to trigger management action and response escalation.

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What is the limitation of cyber security? ›

One of the main disadvantages of cyber security is the cost. Implementing robust cyber security measures can be expensive, especially for small businesses with limited resources. Costs can include the adoption of advanced hardware and software, employee training, and ongoing maintenance and upgrades.

What is limiting in cyber security? ›

Rate limiting blocks users, bots, or applications that are over-using or abusing a web property. Rate limiting can stop certain kinds of bot attacks.

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Which of the following is typically excluded from cyber insurance coverage? ›

Cyber insurance policies will replace losses in the digital sphere but will not usually cover damage to physical property or bodily injury (death, sickness, disease or physical injury) which results from a cyber incident, as these are often covered by other insurance policies such as property or liability insurance.

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What does comprehensive cyber insurance not protect you from? ›

Loss of Future Revenue

While cyber insurance policies may cover expenses related to a data breach or cyber attack, such as legal fees and notification costs, they generally do not compensate for lost business opportunities or potential future revenue.

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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.

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What is the average cyber insurance premium? ›

What is the average cost of cyber insurance? The average annual premium for personal cyber insurance is between $300 and $1,200, depending on the level of coverage and the specific deductible you choose. The average cost of cyber insurance for a business is between $500 and $5,000 per year.

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What is the average cyber claim? ›

99% of all cybersecurity insurance claims came from SME companies (annual revenue under $2 billion). The average cybersecurity insurance claim cost for a small to medium enterprise is $345,000. The average cybersecurity insurance claim cost for an SME for a ransomware event is $485,000.