Cyber liability insurance protects tech companies against the high costs of data breaches and cyberattacks. The cost of your policy is determined by factors such as the type and amount of sensitive information your business handles.
For TechInsurance customers, the median cost of cyber liability insurance is $145 per month or $1,743 per year. The median better illustrates what you can expect to pay since the average values include high and low extremes.
Many small businesses (39%) pay less than $1,500 per year for cyber liability insurance and 41% pay between $1,500 and $3,000 per year.
The higher you raise your policy limit, the more you’ll end up spending on cyber liability insurance.
Policy limits often include both an occurrence limit and an aggregate limit. The occurrence limit is the amount an insurer will pay to cover a single claim. The aggregate limit is the amount an insurer will pay during the lifetime of a policy (usually one year).
Cyber liability policies have occurrence limits that range from $500,000 to $5 million or more. If you choose a cyber liability policy with a higher coverage limit, expect to pay more since the cost of a policy is directly related to the maximum amount that policy covers.
Pay your annual premium upfront. You can usually pay your premium in monthly or annual installments. While it might be tempting to pay lower monthly premiums, consider paying the entire annual premium upfront. Many insurers offer discounts for businesses who pay this way.
Manage your business risks. If your business has no claims history, you’ll likely pay lower insurance rates. An effective way to reduce claims is to create a comprehensive cyber risk management plan. For example, you might: