Cyber liability insurance protects against data breaches and cyberattacks. Policy costs are determined by how much sensitive information your business handles and other factors.
Regardless of policy limits, the median annual cost of cyber liability insurance is $1,675 (about $140 per month) for Insureon small business customers. The median premium gives a better estimate of what your small business is likely to pay for this policy than the average cost of cyber insurance because it excludes high and low outliers.
Many small business owners (27%) pay less than $1,000 per year for cyber liability insurance, and another 36% pay between $1,000 and $2,000 per year. These figures are sourced from an analysis of policies issued to Insureon customers.
Businesses that handle a large amount of sensitive customer information typically pay a higher premium for cyber liability insurance. For example, healthcare professionals with access to customers' personal and medical information may pay more for this policy.
To see insurance costs for businesses in your industry, visit our industry-specific cost analyses:
Cyber liability policies have coverage limits that range from $500,000 to $5 million or more per occurrence. If you choose a cyber liability policy with a higher coverage limit, expect to pay more than you would for basic coverage since the cost of a policy is directly related to the maximum amount that policy covers.
More than half of the small businesses that purchase cyber liability insurance through Insureon (54%) choose a policy with a $1 million limit. Other common limits are $500,000, $2 million, $3 million, and $5 million. Businesses that face higher risks, such as a potential lawsuit over mishandling thousands of credit card numbers, may choose a higher policy limit to protect against escalating lawsuit costs.
Pay the annual premium upfront. You can usually choose to pay your 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 providers offer businesses a discount for paying the entire annual premium at once.
Manage your cyber liability risks. If your small business has no cyber liability claims history, you could save money on your premium. You can also save money by implementing cybersecurity measures at your business. For example, you might:
Your overall insurance costs depend on which types of insurance you buy. Learn how much other small business insurance policies cost: