Quick Answer: Cyber Insurance for Internet Service Providers

ISPs handle massive volumes of customer data and are prime targets for DDoS attacks, ransomware, and data breaches. Cyber insurance for ISPs typically costs $1,500–$8,000/year depending on subscriber count and revenue.

Best carriers for ISP cyber coverage:

Hartford: Strong first-party coverage, incident response included, ideal for regional ISPs under $5M revenue
Chubb: Premium coverage with $10M+ limits, technology E&O bundling, best for mid-market providers
Coalition: Tech-forward underwriting, active monitoring tools, competitive pricing for startups

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Why ISPs Need Cyber Insurance
What Cyber Insurance Covers for ISPs
Common Cyber Threats to ISPs
Cost Breakdown by Provider Size
Top Carriers Compared
Choosing the Right Policy
FAQ

Why ISPs Need Cyber Insurance

Internet service providers sit at the backbone of digital infrastructure. When an ISP suffers a breach, the downstream impact affects every connected business and household. Regulatory exposure under state data breach notification laws, FCC compliance requirements, and potential class-action lawsuits make cyber insurance essential — not optional.

Key risk factors for ISPs include:

Customer PII storage — billing records, addresses, SSNs for credit checks
Network uptime obligations — SLA breaches during outages trigger financial liability
Third-party vendor risk — peering agreements and upstream provider dependencies
Regulatory scrutiny — FCC, state AG offices, and CPNI regulations

→ See what your ISP would pay for cyber coverage

What Cyber Insurance Covers for ISPs

Coverage Type	What It Protects	Typical Limit
First-party breach response	Forensics, notification, credit monitoring	$1M–$5M
Business interruption	Lost revenue during network outages	$500K–$3M
Ransomware/extortion	Ransom payments, negotiation costs	$1M–$5M
Regulatory defense	FCC fines, state AG investigations	$500K–$2M
Third-party liability	Customer lawsuits for data exposure	$1M–$10M
Media liability	Content-related claims on hosted sites	$500K–$2M

Most ISP cyber policies also include pre-breach services like vulnerability scanning and employee phishing training at no extra cost.

Common Cyber Threats to Internet Service Providers

DDoS Attacks remain the #1 threat to ISPs. A sustained volumetric attack can take down regional networks for hours, triggering SLA penalties and customer churn. In 2025, the average DDoS attack lasted 68 minutes and cost affected ISPs $120,000+ in direct losses.

Ransomware targeting network management systems has surged 340% since 2023. Attackers encrypt routing tables and DNS configurations, making recovery without backups nearly impossible.

Insider threats from network engineers with privileged access represent 23% of ISP data breaches. A single compromised admin credential can expose millions of customer records.

Supply chain attacks through compromised firmware updates or BGP hijacking can redirect traffic through malicious nodes without detection.

→ Compare cyber quotes from Hartford, Chubb & Coalition

Cost Breakdown by Provider Size

ISP Size	Annual Revenue	Subscribers	Typical Annual Premium	Recommended Limit
Startup/Local	Under $1M	<5,000	$1,500–$3,000	$1M
Regional	$1M–$10M	5,000–50,000	$3,000–$8,000	$2M–$5M
Mid-market	$10M–$50M	50,000–250,000	$8,000–$25,000	$5M–$10M
Large	$50M+	250,000+	$25,000–$75,000	$10M+

Factors that increase premiums: lack of MFA on network management tools, no incident response plan, previous claims history, and storing unencrypted customer payment data.

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Top Carriers Compared

Hartford

Best for: Regional ISPs under $5M revenue
Typical premium: $2,500–$6,000/year
Strengths: Bundled Tech E&O, 24/7 breach hotline, pre-breach risk assessment
Limits: Up to $5M cyber, $3M E&O

Chubb

Best for: Mid-market and enterprise ISPs
Typical premium: $5,000–$20,000/year
Strengths: Highest available limits ($25M+), global incident response network, regulatory defense specialists
Limits: Up to $25M+ cyber

Coalition

Best for: Tech-savvy startups and WISPs
Typical premium: $1,800–$5,000/year
Strengths: Active cyber monitoring, automated threat alerts, competitive pricing
Limits: Up to $15M cyber

Cowbell

Best for: Small ISPs wanting AI-driven pricing
Typical premium: $1,500–$4,000/year
Strengths: Continuous risk assessment, fast online quotes, API-driven
Limits: Up to $5M cyber

→ Compare all carrier quotes side-by-side

Choosing the Right Policy

When evaluating cyber insurance as an ISP, prioritize these coverage elements:

Business interruption with SLA coverage — Ensure your policy covers contractual penalties when network outages breach customer SLAs
DDoS-specific coverage — Not all policies cover DDoS as a covered peril; confirm this explicitly
Regulatory defense — FCC and state-level investigations require specialized legal counsel
Retroactive date — Look for policies with unlimited retroactive coverage for pre-existing breaches discovered after binding
Dependent business interruption — Covers losses when your upstream provider or peering partner suffers an outage

Avoid policies with blanket infrastructure exclusions — some carriers exclude "network infrastructure" claims, which would negate most ISP-relevant scenarios.

Frequently Asked Questions

Does general liability cover cyber incidents for ISPs?
No. General liability explicitly excludes electronic data and cyber events. You need a dedicated cyber policy.

Are DDoS attacks covered by standard cyber insurance?
Most policies cover DDoS under business interruption, but verify the policy language. Some require a minimum outage duration (e.g., 8+ hours) before coverage triggers.

Can ISPs bundle cyber with Tech E&O?
Yes — Hartford and Chubb both offer bundled Cyber + Tech E&O policies, typically saving 15–20% vs. standalone policies.

What is the claims process for a network breach?
Call your carrier's breach hotline immediately. They deploy forensics within 24 hours, handle customer notifications, and coordinate legal defense.

Do wireless ISPs (WISPs) qualify for the same coverage?
Yes, WISPs qualify for the same cyber policies. Fixed wireless and fiber ISPs are underwritten similarly.

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