Understanding Your Cyber Liability Insurance Quote
Like any other form of insurance, cybersecurity costs are not one-size-fits-all. The primary factors impacting the cost of cyber liability coverage will be your business size and industry, plus the level of coverage you’re requesting:
1. Your Industry and the Type of Information You Handle
First, insurers will consider your risks. To do so, they typically factor in your industry sector and the type of information you’re handling to calculate how much a data breach at your company could cost.
For example, if you’re in the data analytics industry storing minimal customer-facing data, your insurer would have far fewer risks of major, expensive lawsuits. On the other hand, if you’re a major healthcare intelligence company handling private patient data, you face high risks of data breaches resulting in expensive lawsuits.
The types of products or services you provide within your sector can also affect costs. For example, suppose you provide software or some form of IT service where the client expects a certain level of data protection. In that case, you may face increased scrutiny after a cybersecurity attack, which increases the risk of expensive lawsuits.
Generally, you can expect higher cyber-risk insurance expenses if you’re in a high-risk sector storing customer-facing information.
2. Your Company Size and Location
Cyber liability insurance costs also depend on your company’s size and location. The more employees and devices you manage, the greater your risk of a security breach. Insurance companies consider the number of access points at your company when developing your price of cyber liability protection.
Location matters particularly for remote companies or global teams handling information across nations. Potential insurers will consider risks like your team’s use of public Wi-Fi, VPN requirements, local regulations for global workforces, and more. Your cybersecurity insurance costs may rise if you have a large team of remote employees handling sensitive information, as you cannot secure their networks.
3. Your Policy Type and Any Previous Claims
As with any other forms of insurance, your policy limitations will also impact costs. Most policy limits typically range from $1 million to $5 million, but the exact limit you choose will affect your monthly premiums. You can also add various layers of coverage for extra protection, which will cost more but may be worth it, depending on the nature of your operation.
As you create your policy, you can select a deductible, which is the out-of-pocket expenses your business must pay before coverage kicks in. The higher you set the deductible, the lower your monthly premiums will be, and vice versa. You can adjust your premiums by changing your deductible according to your comfort levels.
The final factor that can affect your cyber liability insurance costs is previous claims. If you’ve had to file claims on a cyber liability insurance policy in the past, you will likely have higher premiums moving forward.
Now that you understand all the factors that go into cyber liability insurance cost quotes, read about common cybersecurity myths to understand how your coverage works. When you’re ready to protect your business from cyber liability threats, click here to request a no obligation quote.