The average premium for cyber liability insurance is about $145 per month. Your exact cost will depend on several factors, including the type of data you handle and your policy limits.
On average, cyber liability insurance costs $145 per month, or about $1,740 annually. Over a third (38%) of policyholders can expect to pay under $100 for their cyber liability insurance coverage.
Our figures are sourced from the median cost of policies purchased by TechInsurance customers. The median provides a better estimate of what your business is likely to pay because it excludes outlier high and low premiums.
Cyber liability insurance covers the high costs resulting from a data breach or cyber extortion, including credit monitoring expenses, regulatory fines, and legal fees.
When looking into cyber liability coverage, understand that it’s all about scale and risk. Insurance companies consider basics like the size and location of your business. They also weigh additional factors such as:
The type and volume of data you work with directly affects data breach insurance costs.
If your business stores minimal data, your costs will be low. For example, a data analysis firm that doesn’t store or manage customer information will pay less than a large business intelligence healthcare company.
If you’re storing large volumes of sensitive customer data like personal information, credit card numbers, Social Security numbers, or medical records, your cyber insurance policy will cost more as you are at a greater risk for cybercrimes.
You’ll also pay more for cyber insurance if a client could blame your business for failing to prevent a data breach or cyberattack.
The cheapest option isn’t always the best one. Find a policy that will keep your business safe from the slyest cybercriminals and hackers.
For example, an IT consultant could recommend database software that gets hacked. Or a cybersecurity firm’s safeguards could get undermined by someone opening a phishing email. In both cases, the client could hold you responsible even though you did nothing wrong and you'd be left with high legal costs.
Small business owners with this kind of risk need third-party cyber liability insurance. Third-party coverage is usually bundled with errors and omissions insurance in a package called tech E&O.
It’s a simple numbers game. If more of your people have access to sensitive data, then be prepared to pay more for your coverage. The more access points, the greater the risk of a security breach. If possible, limit data access to keep insurance costs down.
Any insurance claims you’ve made in the past on your cyber liability insurance policy will likely result in higher premiums in the future.
How much business coverage do you need? Typical cyber liability policy limits range from $1 million to $5 million or more. If you choose a policy with higher coverage limits, you’ll probably pay higher cyber insurance premiums.
Policy limits include both a per-occurrence limit and aggregate limit. The occurrence limit is the amount an insurer will pay to cover a single claim. The aggregate limit is the total amount an insurer will pay during a policy year.
Not sure which policy limit to pick? Learn how much cyber liability insurance you may need.
Consider out of pocket costs. The deductible is the amount you must pay before your coverage kicks in. Cyber liability policies with $1 million policy limits typically require a deductible of around $2,500.
The cheapest option isn't always the best one. Find a policy that will keep your business safe from the slyest cybercriminals and hackers. Check with your insurance company as many plans are flexible when it comes to adjusting deductibles and limits to fit your budget.
It’s not all about paying more as there are three key ways to keep the cost of cyber insurance down.
Most insurers let you decide whether to make your insurance payments once a month or once a year. It’s tempting to make monthly payments because it’s more budget-friendly, but you can usually get a discount if you pay the entire premium cost up front.
Some small businesses may be eligible to bundle cyber liability insurance with their errors and omissions coverage in a technology errors and omissions policy. Generally, this policy costs less than purchasing the coverages separately.
Most insurers will evaluate your network security efforts before they insure you. The stronger your security, the less you’ll pay for cyber insurance coverage.
A good risk management plan to lower your cyber risks and your premium include:
Liability claims can be a threat to your tech business. If you’re accused of injuring someone, damaging property, or causing other harm it could easily turn into a costly lawsuit. That’s why it's important to have the right insurance protection in place to cover a range of potential liability risks.
TechInsurance is a trusted insurance expert for small businesses, including contractors and consultants, with extensive knowledge of the IT sector. We help business owners compare quotes from top-rated providers, buy policies based on your business needs, and manage coverage online.
By completing TechInsurance's easy online application today, you can compare free quotes for cybersecurity insurance and other types of insurance from top-rated U.S. carriers. TechInsurance insurance agents are available to help answer any questions you may have.
Once you find the right policies for your small business, you can begin coverage in less than 24 hours and get a certificate of insurance for your small business.
Insurance premiums vary based on the policies a business buys. View our small business insurance cost overview or find out the average costs for other common types of business insurance.