Updated 12th of June 2020
We added comparisons between the leading cyber insurance providers, as well as further details about CoverWallet, Hiscox, and AIG.
Cyber insurance is a type of liability insurance that protects your business in the event of a cybersecurity breach. Since so much important information is now stored on computers, cyber insurance is an increasingly popular type of coverage.
Why We Chose CoverWallet, Hiscox, & AIG:
CoverWallet offers a wide range of business insurance, including commercial property insurance, cyber liability, medical malpractice, commercial auto insurance, professional liability, and umbrella insurance. CoverWallet customers can purchase and manage all necessary business insurance on one platform.
CoverWallet's cyber insurance insures your sensitive data from both internal and external cyber attacks. It provides coverage for a wide range of breaches, including loss of digital assets, business interruption, cyber extortion, and cyber terrorism.
Hiscox offers worldwide cyber liability coverage to protect, businesses with optional coverage for business interruption resulting from a cyber disruption, cyber crime, and more. Hiscox also provides clients with useful breach response resources so that they'll know exactly how to respond in the event of a cyber breach.
AIG is one of the most well-known insurance providers in the United States. AIG offers a variety of cyber insurance solutions, and their cyber experts will help clients to analyze threats and mitigate their risk with the best possible coverage.
Things to Consider When Evaluating Cyber Insurance Providers:
- Evaluate the sensitivity of your company's data and the risks you face, as well as the data security rules and regulations that your particular business needs to be compliant with.
- Consider the policy options, the incidences the different options cover and any limitations on coverage or responses to a data breach.
- Read reviews and ask for references to see how quickly a provider responds to a data breach.
Best Cyber Insurance Providers:
A.M. Best Rating
Offers an intuitive dashboard where you can file claims 24/7 but some customers have reported slow response times from customer service.
Offers industry-specific coverage with 24/7 claims filing but some of their products are only available online.
Cyber insurance limits up to $100 million with 24/7 claims filing but they only offer 3 different policy options.
Assists with recovering from damage done to data and systems caused by cyber attacks. Company is based in Canada.
Offers resources for managing cyber risks but has an annual limit of $50,000.
Offers a wide range of insurance products to a variety of industries.
Offers fast online applications and purchases. Only available to Canadian residents.
Offers a wide range of cyber insurance policies but lacks live support.
Offers customized coverage options and special services but lacks live chat support.
Offers a wide range of insurance products aside from cyber insurance in several countries.
Pros and Cons:
- Receive financial compensation in the event of a cyber attack that disrupts essential systems.
- Lost data due to a cyber breach may be able to be recovered through the insurance claim process.
- Your business will be able to afford continued service to customers despite a cyber disruption.
- Not all cyber insurers offer global coverage.
- Rates may be high for companies that do not meet certain security standards.
- Cyber insurance does not limit or prevent cyber-attacks.
Cyber Insurance Comparisons:
CoverWallet vs. Hiscox:
CoverWallet is a complete online insurance marketplace the sells cyber insurance from a number of different providers, including Hiscox, while Hiscox itself is an insurance provider that sells their own coverage options exclusively. Hiscox has flexible cyber insurance options, but small businesses may find more affordable rates by using CoverWallet.
CoverWallet vs. AIG:
AIG offers advanced cyber insurance coverage with tailored threat assessment services, which CoverWallet does not have. However, small businesses can use CoverWallet to obtain competitive cyber insurance quotes from dozens of providers, which could result in finding a more affordable solution than AIG.
AIG vs. Hiscox:
Hiscox's cyber insurance includes coverage for liability, extortion, business interruption, and data recovery. Hiscox also has optional coverage for cybercrime, cyber deception, and social engineering. AIG has all of the same options, plus a 24/7 cyber claims hotline where customers can get advice from network experts.
What is the price range for cyber insurance coverage?
The price of your cyber insurance policy depends on the size of your business and the risks that are unique to your industry. Contact an insurance provider for a cyber liability insurance quote.
What is the AM Best rating?
AM Best rates the financial status of insurance providers. The insurer's financial status reflects its ability to pay out cyber liability claims.
How do I know if my business needs cyber liability insurance?
Consider the dynamics of your business. Do you use computers or mobile devices? Do you store information on those computers? Is the data that you store critical to your operations or sensitive to your clients? If you answered yes to any of these questions, you should consider cyber security insurance.
How long does a cyber insurance policy last?
Most cyber insurance coverage can be purchased and renewed on an annual basis, although the fees are usually billed monthly.
What are the best cyber insurance companies?
Can cyber insurance providers bundle cyber risk insurance with other types of coverage?
Yes. Sometimes cyber liability insurance policies can be combined with other forms of small business insurance to reduce your premium. If you already have another type of business insurance, ask your provider if they can add cyber insurance to your coverage.
Is cyber insurance for small businesses really necessary?
Even in small businesses, the threat of a cyber attack is very real. In a sense, small businesses are more vulnerable since their security is usually not as advanced and a data breach could halt operations.
What is the difference between cyber and crime insurance?
Crime insurance is a type of coverage that businesses purchase to protect themselves from the risk of criminal activity that leads to a loss of company finances or property. Cyber security insurance coverage, on the other hand, exists for cyber attacks that cause a loss or corruption of digital assets.
What are some popular cyber risk insurance companies?
Can I cancel my cyber security insurance policy at any time?
That depends on the rules and regulations that are laid out in your policy agreement. Consult with your insurance provider to find out what their rules and limitations for cancellation are.