Best cyber insurance for small businesses

With its increasing importance, there's no shortage of companies selling cyber insurance. This policy protects your small business from financial losses caused by a cyberattack or a data breach that exposes customer data.

The hard part is finding the right coverage options for your needs. Most companies need only first-party coverage, which covers cyber incidents at your own business. You can often buy this as an add-on to a general liability policy.

However, tech companies usually need third-party coverage as well. This type of cyber coverage pays for legal defense costs if your business is sued for failing to prevent a data breach at a client's business.

Insureon is the #1 digital agency for small business insurance, partnering with 40+ U.S. insurance providers to find the best cyber solutions for your small business. We've helped over 450,000 small businesses get protected with more than 1.8 million policies.

When you compare quotes with our free application, we do the work for you by navigating the cyber insurance market. The most important factors are:

• Best-rated cyber insurance companies, in terms of financial strength
• Best providers for your industry
• Best providers for your business's location

Some providers specialize in cyber insurance coverage for certain industries, and others operate only in limited areas. All of our insurance partners are rated excellent or superior by AM Best, a global credit rating agency specializing in the insurance industry.

Depending on the carrier and other factors, you may see this type of coverage called cyber liability insurance, cybersecurity insurance, or data breach insurance.

Every business that handles personally identifiable information (PII), from email addresses to Social Security numbers, should have cyber insurance.

However, different industries face different cyber threats, which is why you want an insurance provider that specializes in your profession. A provider that's familiar with your unique business risks can make sure you're covered for the relevant exposures.

For example, your company might need a cyber policy that includes business interruption coverage. This coverage pays for temporary outages related to a cyber claim (instead of a property claim like standard business interruption insurance). If a cyberattack knocks out a system you depend on, it will cover lost income and related expenses.

Here are the cyber insurance providers we recommend for our top industries:

Some insurance carriers are national and others are regional, which means they might not offer small business insurance in your state. Each state also has its data breach laws and requirements, which is why it's helpful to have a provider who knows your area.

Here are the most popular providers of cyber insurance in our top five states, based on the number of policies sold.

Insureon helps you find the right business insurance for your needs from the nation's leading carriers. Get quotes for cyber insurance, general liability, workers' comp, and other policies in one place by filling out our easy online application.

Our expert insurance agents can answer any questions you might have. They'll make sure your cyber coverage matches your profession, your budget, and any unique risks.

Most small business owners can get insured within 24 hours of applying for quotes. Policyholders can download a certificate of insurance (COI) at any time for proof of coverage.