Cyber Insurance

HELPS manage the financial impact of cyber incidents such as data breaches, ransomware attacks, business email compromise, network outages, and other cybersecurity events.

What cyber insurance typically covers

Coverage varies by insurer and policy, but it generally falls into two categories:

1. First-party coverage

These are costs your own organization incurs after a cyber incident.

Common examples include:

  • Incident response and forensic investigation
    • Determining how the attack occurred
    • Identifying affected systems and data
  • Data recovery and system restoration
    • Restoring files and databases
    • Rebuilding compromised systems
  • Business interruption losses
    • Lost revenue due to downtime
    • Extra expenses to keep operations running
  • Ransomware and cyber extortion
    • Negotiation services
    • Extortion payments (where legally permitted)
    • Recovery costs
  • Breach notification and credit monitoring
    • Informing affected customers
    • Providing identity monitoring services
  • Public relations and crisis management
    • Reputation repair
    • Communications support

2. Third-party liability coverage

These are claims brought against your organization by others.

Examples include:

  • Privacy liability
    • Customer lawsuits after a data breach
  • Regulatory investigations and penalties
    • Certain fines and penalties where insurable by law
  • Defense and legal costs
    • Attorney fees
    • Settlement costs
  • Media liability
    • Copyright infringement
    • Defamation arising from online content

What cyber insurance often does NOT cover

Policies frequently exclude or limit:

  • Poorly maintained systems or known vulnerabilities left unpatched
  • Fraudulent wire transfers unless specifically covered
  • Physical property damage
  • Acts of war or state-sponsored attacks (coverage varies)
  • Insider fraud by owners or executives
  • Contractual liabilities
  • Future lost profits unrelated to the incident

Many insurers now require minimum cybersecurity controls before issuing coverage, such as:

  • Multi-factor authentication (MFA)
  • Endpoint detection and response (EDR)
  • Regular backups
  • Employee security awareness training
  • Email security controls

How much cyber insurance costs

Pricing depends heavily on:

  • Company size
  • Industry
  • Annual revenue
  • Amount of sensitive data stored
  • Security maturity
  • Claims history
  • Coverage limits and deductible

Small businesses

Typical annual premium:

  • $500–$5,000 per year
  • Coverage limits often between $250,000 and $1 million

Mid-sized businesses

Typical annual premium:

  • $5,000–$50,000+ per year
  • Coverage limits often between $1 million and $10 million

Large enterprises

Typical annual premium:

  • $50,000 to several hundred thousand dollars or more
  • Coverage limits can exceed $100 million

Example

A company with:

  • 25 employees
  • $5 million annual revenue
  • Basic security controls
  • $1 million cyber policy limit

might pay roughly $1,500–$5,000 annually, though rates vary significantly by industry and insurer.

Is cyber insurance worth it?

For organizations that:

  • Store customer data
  • Process payments
  • Depend heavily on IT systems
  • Use cloud services
  • Face ransomware risk

cyber insurance is often considered part of a broader risk management strategy, not a replacement for cybersecurity. Insurers increasingly expect organizations to demonstrate strong security practices before providing favorable covera

Disclaimer: All information provided is for informational purposes only and should not be construed as legal, financial, tax, or professional advice. Current costs, benefits, rates, and program details are based on information available at the time of publication and are subject to change without notice. Actual eligibility, pricing, incentives, and terms may vary and should be independently verified with the appropriate providers, agencies, or professionals before making any decisions or commitments.