What Is Cyber Insurance?

Cyber insurance is a specialized insurance policy designed to protect businesses from the financial fallout of cyberattacks and data breaches. Also known as cyber liability insurance or cyber risk insurance, a cyber insurance policy covers costs that general liability and property insurance simply do not — from forensic investigations and customer notification to ransomware payments and regulatory fines.

With 43% of cyberattacks targeting small businesses and the average data breach costing over $100,000, cyber insurance has become essential for companies of every size.

What Does Cyber Insurance Cover?

A comprehensive cyber insurance policy typically includes:

Data Breach Response — Forensic investigation, customer notification, credit monitoring, and legal counsel after a breach
Ransomware & Cyber Extortion — Ransom payments, data recovery, and expert negotiation support
Business Interruption — Lost revenue and extra expenses while your systems are offline due to a cyber event
Regulatory Defense & Fines — Legal costs and penalties from HIPAA, PCI-DSS, GDPR, and state privacy law violations
Third-Party Cyber Liability — Lawsuits from customers, partners, or vendors affected by a breach at your business
Social Engineering & Wire Fraud — Losses from phishing schemes, impersonation, and fraudulent wire transfers

How Much Does Cyber Insurance Cost?

For small businesses with under $1M in revenue, cyber insurance typically costs $500–$1,500 per year ($42–$125/month). Key pricing factors include:

Industry and type of data you store or process
Annual revenue and number of customer records
Security posture (MFA, encryption, endpoint protection, backups)
Claims history
Coverage limits and deductible

Healthcare, financial services, legal, and technology businesses typically pay higher cyber insurance premiums due to the sensitivity of the data they handle.

Top Cyber Insurance Carriers

Insura partners with industry-leading cyber insurance carriers:

Hartford — Competitive rates with strong small-business cyber insurance options
Chubb — Premium cyber insurance coverage with high limits for mid-market firms
Hiscox — Excellent cyber insurance for solo practitioners and micro-businesses
Coalition — Tech-forward cyber insurance with active threat monitoring included
CNA — Deep cyber insurance expertise for professional services firms

Who Needs Cyber Insurance?

Every modern business with digital exposure needs cyber insurance, including businesses that:

Store customer personal information (names, emails, SSNs, payment data)
Accept credit card or online payments
Use cloud services, SaaS platforms, or remote-access tools
Have employees who use email (the #1 phishing attack vector)
Are contractually or regulatorily required to carry cyber insurance coverage

Whether you are a solo consultant or a 500-person firm, a cyber insurance policy protects your bottom line when digital threats become real-world costs.

Related Cybersecurity Coverages

Cyber insurance is a family of related coverages. Compare the options below to find the right fit for your business:

Cyber security insurance — Coverage for ransomware, phishing, and digital threats
Data breach insurance — First-party coverage for forensics, notification, and breach response
Cyber insurance for law firms — ABA Rule 1.6-compliant coverage for attorneys and firms
Tech E&O + cyber bundle — Bundled coverage for IT consultants, MSPs, and SaaS
Cyber liability insurance — Third-party liability protection for cyber incidents

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