Cyber Security Insurance: Liability, Cost & Quotes From $5

Insurance for software developers and ecommerce sites is growing more popular, and one of the top forms of digital insurance is cyber insurance and data breach coverage. In this guide, we’ll cover everything you need to know about this kind of insurance and we’ll review some of the top cyber insurance companies.

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Cyber Liability Insurance

Cyber security liability insurance is one of the most crucial forms of coverage available to enterprises and businesses because it protects them from the liability arising from data breaches and other cyber security failures. 

Human error committed in the field of IT isn’t rare. In fact, we see in IBM’s 2020 report on data breach that 131 of breaches recorded were caused by human error and cyber attacks resulting from it cost $4.27 million. 

This kind of cyber security insurance will account for legal fees and settlements. You can get this in the form of commercial general liability insurance and professional liability insurance. And also, one word of advice ; don’t complain if it’s expensive as that’s better, because it means generous policy limits.

Insurance for Data Breaches

Cyber breach insurance is similar to cyber liability insurance in that it takes effect when your company has been hacked or has dealt with a data breach. However, the difference is that this kind of cyber security insurance is designed to cover costs  for  lawsuits, settlements, and  tasks need to be done to reverse the damage done. 

A data breach is costly and insurance for data breaches will help a lot. Take a look at the data we extracted from IBM’s cost of data breach report to see how important it is to get insured. 

source:  IBM

Cost for data breach is higher than the previous year at a margin of $380,000 or 10% increase. Notice that data breach cost mellowed a bit from 2019 – 2020, and then there’s a dramatic spike in 2021. 

One reason for this is the implementation of work from home models  that required companies to rely more on digital solutions to operate due to comply with safety work protocols. 

Still, the above figure only provides a general perception of how data breach costs.  Using IBM’s report, we also took a look at the top 5 most costly forms of data breach:

Data Breach Cost (in millions)
Business Email Compromise $5.01 
Phishing $4.65 
Malicious Insider $4.61
Compromised Credentials $4.37
Vulnerability in Third Party Software $4.33

source: IBM

In terms of cost by industry/sector, the healthcare sector experienced heavy blows that’s recorded at $9.23 million, which is a 29.5%  increase of the cost from the previous year. In line with this, businesses providing health-related services are the ones that need data breach insurance the most. 

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Cyber Insurance Cost

Cyber security insurance cost depends on a few different factors, including the size of your enterprise. A larger company will have steeper cyber insurance pricing because they present a larger risk to the insurance company due to their larger number of customers and the more sensitive data that they may have.

A small firm may have the data of a couple dozen clients while a larger company may have info from thousands of people. Since a cyber insurance quote is based on how much an insurance carrier may have to pay out in a worst case scenario, it’s plain to see why your insurance would be more expensive as a bigger company.

Company Cost per month Cost per year
Coalition $131 $1,572
Beazley $124 $1,488
Chubb $123 $1,476
AIG $119 $1,428
Hiscox $127 $1,524
AXA $137 $1,644
Travelers $123 $1,476
CNA $129 $1,548
AON $133 $1,596
Cowbell $120 $1,440
Zurich $125 $1,500
Allianz $135 $1,620
Marsh $131 $1,572
Liberty Mutual $125 $1,500
Average Cost $127 $1,527

We collected these cyber insurance policy quotes using a medium-sized firm with relatively sensitive data that needed to be protected to give a baseline idea of how much an average policy costs. You can expect to pay about 127 dollars per month or 1,527 dollars per year for a cyber insurance policy.

Cyber Liability Insurance Cost

Cybersecurity insurance coverage typically costs about the same as a cyber liability policy unless you get your cyber liability policy bundled in with general liability coverage. Some general liability policies come included with a lower amount of cyber liability coverage with a limit of about $50,000.

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Best Cyber Insurance Companies

If you’re searching for cyber insurance online, then you’re likely wondering about the best cybersecurity insurance companies out there. To make that easier for you, we’ve rounded up a list of the top cyber insurance providers on the market. Read to know their pros, cons, and pricing for a $1 million cyber liability coverage.

Coalition Cyber Insurance

Coalition is a relatively new insurance company that specializes entirely in cyber insurance. The company is based in San Francisco, and they just recently secured a Series E funding, paving the way for their meteoric rise to becoming one of the top  carriers of cyber insurance.

Coalition Policy Details

Coalition offers several types of cyber insurance, ranging from 3rd party liability to 1st party liability coverage. Some of their offers include network and information security liability, multimedia content liability, computer replacement insurance, and even digital asset restoration.

Pros
  • Specializes in cyber security

  • Huge range of coverage

  • Computer replacement coverage

Cons
  • Relatively young company

Average cost : $131

Best for : Tech firms looking for security solutions

Rating : 5/5

Beazley Cyber Insurance

Founded in 1986, the Beazley Group is one of the many underwriters at Lloyd’s of London, meaning that they benefit from robust chains of security in the insurance world. The company mainly focuses on providing clients with specialist insurance policies like network security insurance.

Beazley Policy Details

Beazley offers a range of products to customers looking for cyber insurance coverage, including their breach response policy, information security and privacy insurance, and their MediaTech policy. Each of their policies are tailored to specific digital businesses since not all cyber insurance claims are the same.

Pros
  • Specialized policies

  • Relatively affordable

  • Available in the US, Europe, and Asia

Cons
  • Slow claims response

Average cost : $124

Best for : Specialized coverage

Rating : 4/5

Chubb Cyber Insurance

Chubb Limited is based in Zurich, and it’s one of the largest insurance companies in the world, offering a wide range of insurance policies, including property and casualty coverage, health insurance, life insurance, and, of course, cyber insurance coverage. Operating in over 55 countries, Chubb offers near-worldwide coverage.

Chubb Policy Details

Chubb offers a variety of products and services in the cyber security space. This includes their Cyber Enterprise Risk Management policy, the DigiTech Enterprise Risk Management, and Chubb’s Integrity+. Alongside these policies, they offer incident response solutions, endpoint security solutions, and many more useful services.

Pros
  • Available almost worldwide

  • Rated extremely reliable

  • Good price

Cons
  • Less specialized in cyber insurance than other firms

Average cost : $123

Best for : Response solutions

Rating : 4/5

AIG Cyber Insurance

AIG, which stands for the American International Group, is an insurance company that has been running for over 100 years. Originally founded in Shanghai, China, the company now has its HQ in New York City. The company operates in over 80 countries, giving Chubb a run for their money as a truly international insurer.

AIG Policy Details

AIG has a few different forms of cyber attack insurance, ranging from their CyberEdge coverage to CyberEdge Plus for more advanced customers. AIG also offers additional services, including threat scoring and analytics, and they’ll even provide some customers with up to $25,000 worth of proactive tools to prevent losses.

Pros
  • International coverage

  • Proactive loss prevention tools

  • Affordable

Cons
  • Quotes are a bit slow to come through

Average cost : $119

Best for : Worldwide coverage

Rating : 4/5

Hiscox Cyber Insurance

Hiscox has existed since the early 1900s, when it was originally founded as a marine insurance underwriter for Lloyd’s of London. To this day, Hiscox is still part of the Lloyd’s network, and the company is known for providing various forms of specialist insurance coverage, including cyber security coverage.

Hiscox Policy Details

Hiscox offers a range of benefits with its cyber liability insurance policies, including access to its CyberClear Academy, which trains you to mitigate the risk of getting your data stolen. The Hiscox policy also comes with loss of income compensation, which isn’t available from all competitors.

Pros
  • Loss of income compensation

  • Access to the CyberClear Academy

  • High degree of reliability

Cons
  • Less experienced in cyber insurance

Average cost : $127

Best for : Cyber security insurance for small business

Rating : 3.5/5

AXA Cyber Insurance

AXA is a multinational insurance company that is technically based in Paris, France, but the company has multiple subsidiaries all around the world. In practice, this means that you can get AXA coverage in the United States, Africa, the Middle East, and Europe.

AXA Policy Details

AXA offers its CyberRiskConnect policy to clients looking for cyber insurance, and their policy has a range of benefits, including advanced endpoint protection for risk mitigation. They also work to protect you from phishing and social engineering and provide training on privacy awareness.

Pros
  • Wide range of risk mitigation strategies

  • Adaptable policy

  • Business interruption coverage

Cons
  • Expensive

Average cost : $137

Best for : Large corporations

Rating : 3/5

Travelers Cyber Insurance

Travelers was founded in 1853 as St. Paul Fire and Marine and was eventually refounded in 2004 as The Travelers Companies. The company originally started in Minnesota but they currently have their HQ in New York City. Despite this, the company’s largest office is in Hartford, CT.

Travelers Policy Details

Travelers offers cyber liability insurance to its clients, and it consists of a program that comes bundled with pre-breach services. These services are offered by Symantec, one of the largest companies in the cyber security space, and they also allow you to access the Travelers Cyber Academy for better security training.

Pros
  • Pre-breach services by Symantec

  • Good price

  • Cyber security coaches available

Cons
  • Fewer offerings than the competition

Average cost : $123

Best for : Medium-sized businesses

Rating : 3/5

CNA Cyber Insurance

CNA was founded as the Continental Casualty Company in 1897, and it is one of the largest commercial insurance companies in the United States. This company specializes in providing property and casualty insurance to businesses but they have also expanded into cyber security insurance.

CNA Cyber Security Policy Details

CNA offers a range of services alongside their cyber security policies, including CNA Cyberprep, which adequately prepares business for threats. They also offer CNA Netprotect 360, which combines cyber protection and risk management into a single policy that keeps things easy to manage.

Pros
  • Modular insurance options

  • CyberPrep

  • Network failure coverage

Cons
  • Less experienced in cyber insurance than competitors

Average cost : $129

Best for : Additional resources

Rating : 3/5

AON Cyber Insurance

While AON is a British insurance company based in London. It was formed out of the merger of the Ryan Insurance Group and the Combined Insurance Company of America. The new company renamed itself to AON, which is a Gaelic word that means “one.” Quite fitting considering it was formed from the merger of two companies.

AON Policy Details

AON doesn’t offer cookie-cutter policies like many of their competitors. Their agents will evaluate your needs when it comes to cyber insurance and they will tailor an insurance policy to match the amount of protection you need and the price that you’re willing to pay for coverage.

Pros
  • Tailor-made policies

  • Flexible pricing

  • Quick to provide a quote

Cons
  • Expensive

Average cost : $133

Best for : Custom coverage

Rating : 3.5/5

Cowbell Cyber Insurance

Cowbell is a unique provider of cyber insurance space because it leaves  underwriting its AI-based algorithms. Their algorithm works to determine the risk that a company is facing and then defines it on a scale ranging from 1 to 100. 

Cowbell Policy Details

Cowbell offers standalone cyber risk insurance policies that are not meant to be combined with other forms of coverage. This means that you can rely on them solely for your cyber insurance needs because all computations are done automatically.

Pros
  • AI-based continuous underwriting

  • Specialized in cyber insurance

  • Individualized coverage

Cons
  • Potentially too cutting-edge for more traditional clients

Average cost: $120

Best for : Continuous underwriting

Rating : 4/5

Zurich Cyber Insurance

While this may not surprise you, Zurich Insurance is based in Zurich, Switzerland, and they are the largest insurer in the country. The company has customers in over 200 countries, making them one of the most extensive multinational insurance firms in the world. 

Zurich Policy Details

Zurich offers a variety of first party coverage for firms looking for cyber insurance. These include breach costs coverage, business income loss insurance, digital asset replacement expenses, and cyber extortion reward payments. 

Pros
  • Reliable coverage

  • Proactive measures

  • Also offers third-party coverage

Cons
  • Slow claims response

Average cost : $125

Best for : First-party coverage

Rating : 3.5/5

Allianz Cyber Security

Allianz has been in business for over 130 years, and the company is based in Munich, Germany. Allianz is one of the largest insurance companies in the world, as well as one of the largest financial services companies. The company offers worldwide coverage due to its immense size.

Allianz Cyber Insurance Policy Details

Allianz offers their customers cyber security under the Allianz Cyber Protect policy. This policy includes data breach liability insurance, business interruption coverage, restoration costs for lost data, media liability, and IT forensic support to help reduce the damage to a company’s reputation.

Pros
  • Extremely reliable

  • Serves customers worldwide

  • Offers IT forensic support

Cons
  • A little pricey

  • Average cost : $135

    Best for : Reliability and worldwide service

    Rating : 5/5

    Marsh Cyber Insurance

    Marsh was started in the early 20th century, and it was originally founded to tend to the insurance needs of railroads. During the 1960s, the company went public and it has been growing ever since. The company’s most recent acquisition was Assurance Holdings, Inc., based in Schaumburg, IL.

    Marsh Policy Details

    Marsh offers a few different cyber insurance policies depending on the needs of their customers. The first is their Cyber Risk policy, though you can also opt for their Cyber Liability insurance policy which isn’t offered directly through them but rather through their parent company, Marsh McLennan.

    Pros
    • Covers ransomware and breaches

    • Data breach notification

    • Business interruption coverage

    Cons
    • Cyber liability has to go through parent company

    Average cost : $131

    Best for : Large-scale commercial cyber liability coverage

    Rating : 3.5/5

    Liberty Mutual Cyber Insurance

    Liberty Mutual was founded in Massachusetts in 1912, and the company has since become the third-largest provider of property and casualty insurance in the United States. Alongside that, Liberty Mutual data breach insurance is a growing part of their business due to the increasing popularity of cyber insurance products.

    Liberty Mutual Policy Details

    Liberty Mutual’s Cyber Liability insurance policy comes with a range of benefits, including the fact that they monitor your credit and notify you when you’ve sustained a breach. The company will also cover any revenue that you lose due to network outages, and they will pay out ransoms if you’re being extorted.

    Pros
    • Credit monitoring

    • Restoration of data and equipment

    • Coverage of regulatory payments and fines

    Cons
    • Not specialized in cyber security 

    Average cost : $125

    Best for : Monitoring and notifications

    Rating : 3/5

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    Compare Cyber Insurance Quotes From the Best Cyber Insurance Companies and get a Cheap Cyber Insurance in 2 Clicks

    So you have found your dream gadget and now it’s time to compare and get the best cyber insurance policy online! A process that can be exhausting to deal with, confusing and expensive, yet a “must”, if you want to protect from hackers and technological breaches.

    Luckily, Insuranks lets you compare cheap cyber insurance quotes and companies with confidence. Here you can educate yourself on the matter, read customer reviews and rank companies, and end up having the best cyber insurance coverage at the best rate from the best cyber insurance provider for your needs online.

    In our ever-evolving, tech-centric world, it is very important to ensure that your information, and that of your business, is protected from threats coming from many different directions. 

    Before you get started, it is very important to understand more about cyber insurance, how it works, and the benefits of having such insurance coverage. How else are you going to make the best decision.

    In society today, individuals and businesses utilize technology in nearly every facet of operation. Mobile phone, smartphone, iphone, computers, laptops, watches, smartwatches, tablets, ipads, e-book readers such as kindle, car gadgets, pet gadgets, health gadgets and more allow for the quick and easy transport of messages, photos, schedules and details needed to keep both your life and your business on track. However, you do not want the person sitting next to you or perhaps someone halfway across the globe having access to this information… 

    Unfortunately, as the prevalence of technology in everyday life grows, so too do threats to internet safety and privacy. To lay out some facts:

    • 43% of all cyber-attacks are targeted at small businesses

    • A cyber-attack takes place every 39 seconds

    • By 2021, an expected $6 trillion is to be spent on cyber security to cover cyber crime damages

    And if you are not already convinced about the need for cyber insurance plans in place in the event  of a cyber-attack, IBM CEO stated that “cyber crime is the greatest threat to every company in the world.”

    Luckily, as cyber-attacks are on the rise, so are cyber insurance options. Currently, there are over 80 cyber security companies in the market seeking to protect you and your business. 

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    So, What is Cyber Insurance Exactly?

    Cyber insurance is an insurance policy that helps cover the costs associated with cyber-attacks, hacking and data breaches involving sensitive and personal information of both individuals and businesses.

    Typically, these types of damages are not covered under general liability policies which is why it is important to consider investing in a cyber insurance plan.

    What Are The Types of Cyber Insurance?

    In order to better understand cyber insurance, we can break it down into three main categories: cyber security insurance, cyber liability insurance, and technology errors and omissions insurance Let’s explore them all in more detail:

    1.  Cyber Security Insurance (Privacy Notification and Crisis Management Expense Insurance)

    Cyber Security Insurance exists to help reduce the loss your company faces in the event of a cyber-attack and to help your company get back on its feet. By getting a cyber security plan your company may benefit from some or all of the following: data recovery teams, investigation services, public relations manager, services that will notify affected individuals, and more.

    2.  Cyber Liability Insurance (Information Security and Privacy Insurance)

    When a company experiences a data breach or cyber-attack and may face associated liability costs, a cyber liability plan will help mitigate the financial burden. The plan is particularly beneficial for online companies selling certain services or goods as well as companies that take in data electronically. Data breaches can occur from elaborate cyber-attacks or simply having a file stolen from the office. Either way, a cyber liability insurance plan will have you covered.

    3.  Technology and Omissions Insurance (Professional Liability Insurance)

    95% of breaches result from employee errors. This type of cyber insurance helps mitigate the cost of negligence claims and lawsuits. It particularly applies to companies selling technology products as it protects coders and others involved in the process of developing potentially faulty software.

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    What About Personal Cyber Insurance?

    Ensuring that your personal information is safe is just as important as doing so for your company. Certain personal cyber insurance plans cover the following: cyber-attacks, extortion, data breaches, fraud, and even cyberbullying. Unfortunately, the market for personal cyber insurance is still in its nascent stages, and thus the options for buying such a plan are typically limited to purchasing it as an add-on to an existing homeowners insurance policy. If you already have a homeowner’s insurance policy, talk to your representative to see if personal cyber insurance is an option for you. It is certainly worth asking: your data could unknowingly be in the hands of hundreds of strangers.

    What is The History of Cyber Insurance?

    Now that we have highlighted some of the primary types of cyber insurance, we will look more into its history:

    Cyber insurance first appeared in the 1990s, covering limited damages including attacks on 3 rd  parties. Throughout the early 2000s, plans began to expand to cover data breaches but still did not cover 1 st  party damages. As time went on, extortion and damages began to be written into cyber insurance plans. A turning point in the cyber insurance world occurred in July of 2003, when the state of California in the United States implemented the CA Security Breach Information Act. The law mandated that California businesses notify individuals whose personal information was believed to have been compromised. As a result of this law, and subsequently similar ones passed in other states, 1 st  party coverages were created and included benefits pertaining to public relations, investigative tools, and information recovery. Since then, the business has only been booming.

    So Now What?

    So you have now read up and learned more about cyber insurance benefits and believe that it will be a beneficial move for you or your company. Great – we agree! After all, over half of cyber-attacks result in damages that cost $500,000 or more. Better to be equipped with the appropriate resource than to be doing damage control on your own. It is time to think about what your company’s more pressing needs are: protection against potential civil suits? Resources to help your team get back on its feet? Once you have done your due diligence, it is time to start comparing plans. Now you might be wondering how much a cyber plan will cost you… scroll down a little more…

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    What Are The Costs Associated With a Cyber Insurance Plan?

    The average cost of a cyber plan is around $1500 a year (~$125 per month). This number, of course, varies by the size of your business and the scale of your needs. Small business and companies that are not storing much personal information of their clients or employees will likely have the lowest cost cyber insurance plan. On the other hand, companies that are required to track social security numbers, birthdays, and other sensitive client data will likely want to invest a lot more in their plan.

    Examples of these types of businesses would be anyone in the medical or banking fields. It is important to note, however, that while a cyber plan may come with a price tag, this prices tag is drastically less than the amount of damage and restoration bills needed to get your business back on its feet in the event of an attack. For example, small businesses that experience data breaches pay an average of about $35,000 undoing the damage.  $35,000! 

    Summing it All up:

    We hope you have learned a bit about cyber insurance from its benefits, to its history, and just about everything in between! Cyber insurance can provide your business with the necessary tools to rebuild in the event of an attack, restore lost information, get to the roots of the breach, and protect against the potential lawsuits that may result. Taking such preventative measures comes at a cost, but one that is far less of a financial burden than the cost of rebuilding. As technology becomes more complex, so too will cyber-attacks, and so too will the cyber insurance world evolve to meet the needs of those whom it is serving.

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