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Originally published: Oct 19, 2021 | Updated: June 3, 2025
Over the past several years, cyber attacks have increased significantly - crippling many businesses and their consumers. According to the cybersecurity form Emsisoft, the number of businesses that fall victim to cybercriminals is rapidly increasing every year - costing some companies billions in losses.
Cyber attacks of any scale and be extremely costly and detrimental, even putting some companies out of business entirely. This is why cyber insurance is a smart investment for any business.
But at Berry Insurance, we know that if you're currently considering cyber insurance, you're also likely wondering how much it will cost you. Since we've issued several cyber policies for business of all types in Massachusetts and beyond, we know what goes into determining the cost of this type of coverage.
While several factors will go into determining the cost of cyber insurance, we typically see this policy fall somewhere between $500 to $100,000 per year or $41 to $8,333 per month. Keep reading to learn what factors determine this cost and examples of cyber insurance premiums
Table of contents:
What determines the cost of cyber insurance?
We know the range we gave you was a bit broad. So let’s get into the meat of what factors will actually affect your cyber insurance cost.
Company size:
The bigger the company, the greater the chances of having an insurance claim. And cyber insurance is no exception.
The bigger your company and the more employees you have, the more opportunities you have to be exposed to a cyber attack.
Therefore, larger companies will be priced higher for cyber insurance.
Number of clients:
Similar to company size, the number of clients your company has will increase the risk of a cyber attack.
More clients also means more opportunity for them to sue you if you experience a data breach that compromises their data or personal information.
So the number of clients your business has also plays a role in determining your cyber insurance premium.
Revenue:
You know the saying more money, more problems? Well it applies to your business.
The more revenue your company has, the more vulnerable it is to cyber attacks. After all, the more you are worth, the more desirable you are to cyber attackers because their potential award is greater.
So because revenue plays a role in your risk, it also plays a role in your insurance cost.
Industry:
Believe it or not, the industry you do business in will also influence the cost of your cyber insurance.
The job duties you do and the type of data you store will dictate how vulnerable you are to cyber attacks, and how severe the damage from the attacks can be.
Therefore certain industries will be priced higher than others.
Risk management controls:
When cyber insurance carriers quote you, they will analyze the strategies you use to reduce the risk of cyber attacks.
If you don’t have good cyber
Coverage limits:
Each type of insurance has limits. These amounts are the total amount the insurance carrier would pay out if you were to have a claim.
When purchasing cyber insurance, you can buy as little as $100,000, and as much as $5 million.
How much you choose to buy will depend on how high you perceive your risk, your budget, and any requirements from business partners.
The higher the limits you choose, the higher your premium will be.
Deductible:
Another factor that influences the price of cyber insurance is your deductible. A deductible is the amount you would have to pay out before an insurance carrier paid you any claim money. And usually you have a few deductible options for you to choose from.
With cyber insurance, you can generally choose between deductibles ranging from $1,000 to $10,000.
The higher your deductible, the lower your premium will be.
MA cyber insurance premium examples:
You know the factors that influence price, but you probably still don’t have a clear idea of what exactly that means for your business.
So to help give you some more insight, we’ll give you some specific examples of some of the cyber insurance policies we’ve issued recently.
- An HVAC contractor with $200,000 in coverage limits, and a $5,000 deductible: $134 per year
- A charter school with $100,000 in coverage limits and a $10,000 deductible: $148 per year
- An application service provider with $1,000,000 in coverage limits and a $10,000 deductible: $3,597 per year
- A fish processing company with $2,000,000 in coverage limits and an 10,000 deductible: $6,630
Ensure the right price with a reputable independent agent
We understand you are concerned about the cost of cyber insurance.
Believe it or not, we see a lot of companies forego it to avoid the extra cost. But we wouldn’t recommend that in most situations. We almost always recommend cyber insurance because we are increasingly seeing more businesses fall victim to cyber attacks and we know how detrimental they can actually be.
Still hesitant about if cyber insurance is a good fit for your business? For some examples of when and why you might need cyber insurance, check out this article: Common Cyber Insurance Claims that Could Happen to Your Business.
