Cyber Insurance Cost
How much cyber insurance costs depends on several risk factors that vary from business to business. The amount of data you handle, the sensitivity of that data, and what cybersecurity protocols you follow can all influence your cyber insurance premium.
No matter what kind of business you run, Progressive Commercial can help you find cyber insurance that fits your risks and your budget. Explore your coverage options or connect with an agent to understand what influences cyber insurance costs and get protection tailored to your needs.
What's the average cyber insurance cost?
It's hard to give an average cost for cyber insurance since every business has unique risks and coverage needs. For example, some annual policies might cost around $500, while others cost $5,000 or more. Discover the factors that affect your rate so you can better understand ways to control costs.
What factors impact the cost of cyber insurance?
Your cyber insurance cost can be influenced by several things. The following will give you a good idea of what insurers consider when setting your rate:
Risk profile
What's the likelihood of your business experiencing a cyber attack? Some industries, such as manufacturing, the financial sector, and healthcare, are targeted more frequently by hackers than others.
The financial impact of a data breach is also considered when determining your cyber insurance rate. The more assets at risk, the higher your premium will be.
Coverage needs and limits
How much cyber coverage you need and the limits you choose will have an impact on your cost. For example, a $3 million cyber insurance policy will cost more than a $25,000 cyber insurance policy.
Some partner contracts may require you to carry certain coverage limits. With Progressive Commercial, you can customize the rest of your policy so you're only paying for the protection you actually need.
Type of policy
Cyber insurance can be packaged with other coverages on a business owners policy, or you can purchase standalone cyber protection. The type of policy you choose can affect how much you pay. If you're unsure which option makes the most sense for your business, call one of our expert agents for help finding the right fit.
Data access
Your cyber insurance cost is influenced by who has access to your systems and data. For example, hiring a third-party partner for IT or website maintenance may put your business at a greater risk than hiring someone in-house. 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 may be able to lower your cyber insurance costs if you can document your network security. This can include installing antivirus software, using network firewalls, training employees on best practices, and updating passwords regularly.
Industry and 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. Businesses that have filed claims before are seen as a greater risk for future breaches than those that haven't.
How to get affordable cyber insurance
Finding affordable cyber insurance is possible, especially if you take steps to proactively manage your risk. Some effective ways to reduce your chances of a cyber attack or data breach include:
- Securing your network: Use firewalls, antivirus software, and other security tools to monitor and protect your systems.
- Training your employees: Educate everyone with access to your network about common threats and safe practices.
- Keeping software updated: Regularly update all software to patch vulnerabilities and prevent security issues.
- Using multi-factor authentication: Add an extra layer of security to your accounts and passwords.
By putting strong cybersecurity practices in place, you can lower your risks and save on your cyber insurance cost.
Why choose Progressive Commercial for cyber insurance
More than 1.2 million small businesses trust Progressive Commercial to provide flexible options, competitive rates, and expert service. We can help you get started with a cyber insurance policy tailored to your business needs and budget. Start a quote online, or call us to talk to a licensed insurance professional.
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