Understanding Cyber Insurance Limits Benchmarking for Your Business

Cyber insurance limits benchmarking is a crucial step in protecting your business from cyber threats. According to a recent study, 61% of organizations that experienced a cyber attack reported losses exceeding $500,000.

Understanding the average cyber insurance limits is essential to ensure your business is adequately covered. The average cyber insurance limit for small businesses is around $1 million, while larger organizations typically have limits ranging from $5 million to $10 million.

To determine the right cyber insurance limits for your business, you need to consider your specific risk profile and financial situation. A good starting point is to review industry benchmarks and adjust them according to your unique needs.

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A small tech business typically purchases a cyber liability insurance policy with a $1 million per occurrence limit and a $2,500 deductible. This coverage limit should be high enough to protect a business that handles a few thousand client or customer records.

The average cost of a cyber liability policy with a $1 million per occurrence limit and a $1 million aggregate limit is about $145 per month or $1,740 per year. Many small businesses pay less than $100 per month for cyber liability insurance.

High-risk businesses, such as those specializing in data storage, may need to purchase a cyber liability policy with higher coverage limits, up to $5 million. This can provide additional protection against costly data breaches.

Most small tech companies purchase a technology errors and omissions policy (tech E&O) that includes cyber liability coverage, rather than purchasing a standalone cyber liability insurance policy. This is because the risk of cyber liability is high for tech businesses, and insurance providers often bundle these two policies.

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The average cost of a cyber liability policy with a $1 million per occurrence limit and a $1 million aggregate limit is about $145 per month or $1,740 per year for TechInsurance customers.

Many small businesses pay less than $100 per month for cyber liability insurance, with 38% of them falling into this category.

A third of small businesses pay between $100 and $200 per month for cyber liability insurance, which is a significant portion of the market.

The cost of a cyber liability policy increases with the amount of sensitive data your company handles, so it's essential to consider this factor when determining your insurance needs.

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Cyber liability insurance is a must-have for clients, especially those in high-risk industries like data storage. Most small tech companies purchase a cyber liability policy with a $1 million per occurrence limit and a $1 million aggregate limit.

If a data breach costs a business about $250 per client or customer record, this coverage limit will be high enough to protect any business that handles a few thousand records. However, high-risk businesses may need to consider purchasing a policy with higher coverage limits, up to $5 million.

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Many small businesses pay less than $100 per month for cyber liability insurance, and 38% of them pay this amount. The cost of the policy increases with the amount of sensitive data the company handles.

To protect your business from client lawsuits, encourage your clients to purchase cyber liability insurance or require it before taking on a risky project. You can also adjust the requested coverage limit in the work contract, which can range from $1 million to $5 million or more.