Cyber insurance cost

Small businesses pay an average of $134 per month, or $1,609 annually, for cyber insurance, also called cyber liability insurance or cybersecurity insurance. Annual premiums range from $400 to over $8,000 per year.

Our figures are calculated using the median cost of policies sold by leading insurance companies to Insureon's small business customers. The median offers a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.

Your premium mostly depends on the amount of personal information handled by your business and whether your company has taken steps to prevent data breaches and cyberattacks. Other factors, such as your business location and revenue, can also affect the cost.

Insureon's small business customers pay an average of $134 monthly for a cyber insurance policy.

Annual premiums range from $400 to over $8,000 per year. Among our customers, 38% pay less than $100 per month for their policies, and another 33% pay between $100 and $200 monthly.

The cost varies for small businesses depending on their risks and the type and amount of coverage they choose.

Your provider will consider several factors when calculating the cost of cyber insurance for your business, including:

• Policy limits and deductible
• Type of coverages
• Industry risks
• Number of employees
• Amount of sensitive data handled
• Cybersecurity risk management
• Claims history

Chat with a licensed insurance agent if you're unsure which coverage options to choose.

Your industry can have a tremendous impact on how much you pay for cyber insurance. Businesses in high-risk industries, especially those responsible for cybersecurity, can expect higher premiums.

Network security companies, IT consultants, and similar types of businesses usually need tech E&O instead of standard cyber insurance. That's why IT businesses pay an average of $148 per month, while finance businesses pay an average of $58 per month.

Non-tech industries should carry cyber insurance as well, especially if they use point-of-sale (POS) systems, keep electronic client records, or make digital transactions. At any small business, an employee could fall victim to a costly social engineering scheme, such as phishing, which could expose customer data.

Cyber insurance is just one policy that small business owners should consider. Depending on your industry, such as construction or retail, you may be required by your state to carry other types of insurance, most often general liability insurance.

Below you can find the average cyber insurance costs for a variety of industries:

Cyber insurance rates also depend on the size of your workforce. The likelihood of a security breach increases with the number of employees who can access sensitive information at your business.

All workers should be taught how to keep digital information secure and identify cyber threats. That's especially true for those who handle customer credit cards, banking details, and other sensitive data.

If your business stores a large quantity of sensitive data, you can expect higher insurance rates. That includes any personally identifiable information (PII), such as credit card numbers, Social Security numbers, or healthcare records.

For example, a healthcare facility that has many employees and patients will pay more for cyber insurance than a small medical office with only a few staff members and far fewer patients.

Your business's risk management strategies will directly impact your insurance rates. The more education, training, and safety measures you implement, the less likely your business is to experience a cyber incident and the lower your rates will be.

Having the right cybersecurity measures in place can help your employees avoid inadvertent data breaches. That might include:

• Install firewalls to block incoming threats.
• Update software to reduce vulnerabilities.
• Enable multi-factor authentication to enhance account security.
• Establish a formal bring-your-own-device (BYOD) policy.

Protecting your information eliminates headaches and financial losses down the road, and helps keep your insurance premium low.

A history of claims can signal a risk to underwriters, which could mean a hike in your premiums. A business with a clean claims history can expect lower insurance rates.

For example, an employee at a lawn care business falls victim to a phishing scam. The company ends up filing a claim on their cyber policy to help with incident response and data recovery costs.

When the time comes to renew their policy, the owner notices an increase in their cyber insurance premium, caused at least in part by the claim.

Though cyber liability insurance costs increased following a surge in remote work after the pandemic, premiums have stabilized and even dropped in recent years. More insurance companies are offering cyber insurance—which means more competition—and businesses are taking measures to protect themselves and lower their rates.

Here are several steps you can take to save money on cyber insurance and avoid expensive rates:

Businesses can often save money by bundling policies purchased from the same insurance provider.

For example, most small business owners can add data breach insurance to their general liability policy. Tech companies usually bundle their cyber insurance with errors and omissions insurance in a tech E&O package, sometimes called tech professional liability insurance.

These insurance bundles typically cost less than buying standalone coverage.

Policyholders can choose to pay their cyber liability insurance premium in monthly or annual installments. While it’s tempting to go with monthly payments because they require less cash upfront, many insurance companies offer businesses a discount for paying the entire annual premium at once.

Businesses with a clean history of claims usually pay less for insurance.

To avoid claims and save money on your policy, consider implementing these security measures:

• Routinely change your business’s account passwords.
• Invest in secure equipment and software.
• Teach employees to recognize and avoid malware and phishing attempts.
• Implement multi-factor authentication for employees.

Insureon is the #1 independent agency for online delivery of small business insurance. Our licensed agents help business owners compare quotes from top-rated providers, buy policies, and manage coverage online.

By completing Insureon’s easy online application today, you can get free quotes for cybersecurity insurance and other policies from top-rated U.S. insurance companies. Once you find the right policy for your small business, you can begin coverage in less than 24 hours and get a certificate of insurance to provide proof of coverage.