In today’s digital marketplace, many business leaders struggle to effectively manage cyber risks. While developing a comprehensive policy to protect sensitive infrastructure and information is important, many savvy executives choose to purchase cyber insurance to mitigate damages from potential cyber attacks. Since this type of coverage is relatively new, business owners often wonder how much cyber liability coverage costs.
No Generic Calculation
Unfortunately, when it comes to determining how much a business organization may pay for cyber coverage, there is no generic calculation available. Instead, insurers consider many factors to determine a company’s premium. Some of these are the following:
- Type of data collected and stored
- Data risks
- Privacy policies
Getting a Good Rate
Like with other types of insurance, business leaders often get a lower rate if they work with an experienced insurance agent. They also might save on premiums if they adopt certain policies and procedures. Either way, pursuing the best rate for comprehensive coverage is usually a top priority for conscientious executives.
While diligent business owners typically rely on an assessment of company vulnerabilities and coverage needs to determine how much they should budget for cyber insurance, most pay a relatively small percentage of company income to achieve peace of mind. Regardless of the cost, cyber insurance is becoming commonplace in the business sector.