Quick Answer: Cyber Insurance for Cloud & Hosting Providers

Cloud and hosting providers need specialized cyber insurance because a single breach or outage can cascade across hundreds of client businesses. Coverage starts at $1,000–$2,500/year for startups, scaling to $15,000+ for mid-size providers.

Best carriers:

Chubb: Best for enterprise cloud companies — DigiTech policy with $5M+ limits, Tech E&O built in
Hartford: Best for small-to-mid providers — CyberChoice from $1,200/year, bundled with Tech E&O
Coalition: Best real-time monitoring — active attack surface scanning included with policy

Get your cloud provider cyber insurance quote in 60 seconds →

Why Cloud Providers Need Specialized Cyber Insurance
Top Cyber Risks
What Cyber Insurance Covers
Best Carriers Compared
Cost Breakdown
Security Controls That Lower Premiums
FAQ

Why Cloud & Hosting Providers Need Specialized Cyber Insurance

Cloud service providers and hosting companies sit at the center of the digital economy — and at the center of cyber risk. When your clients entrust their data and applications to your infrastructure, a single breach or outage can trigger cascading liability across dozens or hundreds of businesses.

Standard business insurance does not cover the unique exposures cloud providers face. You need a cyber policy built for technology infrastructure companies.

→ Compare cyber insurance quotes from top carriers

Top Cyber Risks for Cloud & Hosting Providers

Risk Category	Description	Potential Cost
Multi-tenant data breach	Unauthorized access affecting multiple client environments	$500K – $5M+
Service outage liability	Extended downtime causing client business interruption	$100K – $2M
Ransomware attack	Encryption of hosted data and infrastructure	$250K – $3M
Supply chain compromise	Third-party software vulnerability in your stack	$200K – $4M
Regulatory fines	GDPR, CCPA, HIPAA violations for hosted data	$50K – $1M+
Errors & omissions	Failure to meet SLA commitments	$100K – $500K

What Cyber Insurance Covers for Cloud Providers

First-Party Coverage:

Incident response and forensic investigation costs
Business interruption losses from system downtime
Ransomware payment and recovery expenses
Data restoration and system rebuild costs
Crisis management and PR expenses
Regulatory defense and penalty coverage

Third-Party Coverage:

Client notification and credit monitoring costs
Legal defense against client lawsuits
Regulatory investigation defense
Media liability for data exposure
PCI-DSS fines and assessments
Contractual liability for SLA breaches

→ See what cyber coverage your cloud business qualifies for

Best Cyber Insurance Carriers for Cloud Providers

Chubb — Best for Enterprise Cloud Companies

Chubb offers the most comprehensive cyber coverage for technology companies with revenue above $1M. Their DigiTech Enterprise policy includes:

$5M+ limits available
Full retroactive coverage
Technology E&O built into the cyber policy
Sub-limits for dependent business interruption
Coverage for cloud-specific risks like containerization failures

Typical premium: $3,500 – $12,000/year for $1M–$2M limits

Hartford — Best for Small-to-Mid Cloud Providers

Hartford's CyberChoice policy is designed for growing technology firms:

Limits from $100K to $3M
Bundled with Tech E&O for comprehensive protection
Competitive pricing for companies under $5M revenue
24/7 breach response hotline
Free pre-breach risk assessment tools

Typical premium: $1,200 – $5,000/year for $1M limits

Coalition — Best for Real-Time Monitoring

Coalition pairs active cyber monitoring with insurance coverage:

Continuous attack surface monitoring included
Automated alerts for exposed credentials and vulnerabilities
Claims handled by in-house security team
Competitive pricing driven by your actual security posture

Typical premium: $1,500 – $6,000/year for $1M limits

→ Compare all three carriers side-by-side — free quotes in 60 seconds

Cost Breakdown: Cyber Insurance for Cloud Providers

Company Size	Annual Revenue	Typical Premium	Recommended Limit
Solo/startup	Under $500K	$1,000 – $2,500/yr	$1M
Small team (2-10)	$500K – $2M	$2,500 – $5,000/yr	$1M – $2M
Mid-size	$2M – $10M	$5,000 – $15,000/yr	$2M – $5M
Growth stage	$10M+	$15,000 – $40,000/yr	$5M+

Pricing depends on: number of records stored, security controls in place (SOC 2, ISO 27001), claims history, and client contract requirements.

Security Controls That Lower Your Premium

Carriers offer 10–25% discounts for cloud providers that implement:

MFA everywhere — on admin consoles, customer portals, and internal tools
SOC 2 Type II certification — the gold standard for cloud providers
Encrypted backups — with offline/immutable copies
Endpoint Detection & Response (EDR) — on all servers and workstations
Incident response plan — documented and tested annually
Network segmentation — isolating client environments

→ Find out how much you can save with your security controls

Frequently Asked Questions

Does my general liability policy cover cyber incidents?
No. General liability excludes electronic data and cyber events. You need a standalone cyber policy or a tech-specific BOP with cyber endorsement.

Do I need both cyber insurance and Tech E&O?
Yes — cyber covers breach response and data liability, while Tech E&O covers claims from professional service failures. Many carriers bundle both at a discount.

What if my client's data is breached on my infrastructure?
Your cyber policy's third-party coverage responds to client claims. The policy covers their notification costs, your legal defense, and any settlements — up to your policy limit.

Is SOC 2 certification required to get coverage?
Not required, but strongly recommended. Carriers offer better rates and higher limits for SOC 2-certified cloud providers. Some carriers require it for limits above $5M.

Ready to protect your cloud business? Compare cyber insurance quotes from Chubb, Hartford, Coalition, and more — get your free quote in 60 seconds.

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