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Return To: Cyber Insurance – The Ultimate Guide

According to AdvisorSmith, in 2019, the average cost of a cyber insurance policy was $1,485 a year or $124 a month. This amount included a $10,000 deductible for $1 million in coverage. 

They based this average on quote estimates from at least 43 insurance companies nationwide. 

These insurance companies offered cyber insurance premiums ranging from $650 to $2,357, depending on risks.

If you own a business, getting cyber insurance is worth it. 

However, the risks your business faces determine how much you will have to pay. 

Before choosing a cyber insurance company, assess the risks your business faces to calculate the price of cyber insurance. Consider several factors to get the most out of your cyber insurance policy.

What Factors Affect Cyber Security Insurance Cost?

Cyber insurance companies consider a couple of business characteristics when determining your policy:

Medium-risk companies may store sensitive customer data like credit card information. These businesses would need a more specific cyber insurance policy to protect sensitive data from theft.

High-risk industries like hospitals and public offices incorporate more sensitive data in their systems. These places store sensitive information such as Social Security numbers and residential addresses. They require proper protection.

What Are the Different Types of Cyber Insurance?

After examining your business, research either first-party cyber insurance companies or third-party cyber insurance companies. Depending on your needs, you’ll find the right protection against cyberattacks that result in expensive financial and intellectual losses.

First-Party Cyber InsuranceThird-Party Cyber Insurance
Protects your business from cyber crimes targeted within your immediate company’s operations. Covers loss of income that results from cyberattacks. Pays for the time to recover lost files or information after suffering a cybercrime.Protects your institution from threats that target clients, which are linked to your company.Covers legal fees if sued for failure to prevent the cyber crime damages.Pays for government penalties that result from similar claims of negligence.
First-Party Cyber Insurance vs. Third-Party Cyber Insurance

What Does Cyber Liability Insurance Cover?

Cyber liability insurance policies protect your business from risks that involve the data you store. Examples of cyber incidents that these policies cover include:

What Are Cyber Liability Risks?

Cyber liability risks are cyber attacks that your company may fall victim to. There are different cyber liability risks, including:

How Much Cyber Insurance Do I Need?

On average, businesses pay almost $1,500 per month for cyber insurance. However, it’s worth it. Cyber insurance ensures that you get protection for your business from several cyber attacks.

If you’re looking to invest in cyber insurance, assess your business and the risks you might face. Cyber insurance companies will determine the cost of your policy according to the type of business you run. For example, if your business operations rely on computer systems, you’ll require special insurance packages that cost more than smaller businesses with less sensitive data.

Every business should invest in a cyber insurance policy, especially during the pandemic where most employees work from home — increasing your risk of falling victim to cybercrimes. Investing in a cyber insurance policy is a must. Assess the business you run to find the cost of cyber insurance you need. Finally, find the best cyber insurance company to fit your needs.

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