Cyber Insurance Cost
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.
