Cyber security insurance has become essential business protection as breach costs average $4.45 million and ransomware attacks surge. This comprehensive guide covers leading cyber insurance providers, coverage comparison, pricing factors, underwriting requirements, and selecting the right cyber security insurance company for your organization's risk profile.
Table of Contents
- What is Cyber Security Insurance?
- Top Cyber Insurance Companies
- Coverage Comparison
- Pricing and Costs
- Underwriting Requirements
- Selecting a Provider
- Application Process
- Claims Process
- Market Trends 2026
- Frequently Asked Questions
What is Cyber Security Insurance?
Cyber security insurance (also called cyber liability insurance or cyber insurance) provides financial protection against losses from cyberattacks, data breaches, ransomware, business interruption, and cyber extortion. Policies cover first-party costs (direct losses to your organization) and third-party liability (claims from affected customers, partners, or regulators).
As cyberattacks become more frequent and expensive, with average breach costs reaching $4.45 million according to IBM, cyber insurance has shifted from optional coverage to essential business protection. The cyber insurance market grew to $13+ billion globally in 2025, with continued expansion driven by ransomware surge, regulatory enforcement, and board-level risk awareness.
What Cyber Insurance Covers
- Incident Response Costs: Forensics, incident response, remediation
- Legal and Regulatory: Attorney fees, regulatory fines, penalties
- Notification Expenses: Breach notification, credit monitoring
- Business Interruption: Lost revenue during downtime
- Cyber Extortion: Ransomware payments, negotiation
- Data Restoration: Recovery and reconstruction costs
- Liability Claims: Third-party lawsuits, settlements
- Public Relations: Crisis management, reputation repair
- Regulatory Defense: Responding to regulatory investigations
Top Cyber Security Insurance Companies
| Provider | Market Position | Coverage Range | Best For |
|---|---|---|---|
| Chubb | Market leader (#1) | $1M-$100M+ | Large enterprises, complex risks |
| AIG | Top 3 provider | $1M-$100M+ | Global organizations, high limits |
| Travelers | Top 3 provider | $500K-$50M | Mid-market, diverse industries |
| Beazley | Specialist (#1 in UK) | $1M-$50M | Technology companies, startups |
| Coalition | Insurtech leader | $250K-$15M | SMBs, technology-forward orgs |
| CNA | Top 5 provider | $1M-$50M | Healthcare, financial services |
| Axis Capital | Specialist provider | $5M-$100M | Excess coverage, large risks |
| Liberty Mutual | Broad market | $500K-$25M | Mid-market, package policies |
| Zurich | Global provider | $1M-$100M | Multinational corporations |
| Cowbell | Insurtech (SMB focus) | $100K-$5M | Small businesses, fast quotes |
Detailed Provider Profiles
Chubb
Market-leading cyber insurance provider with comprehensive coverage and high limits. Strengths include global reach, financial stability (A++ rated), sophisticated underwriting, and extensive breach response resources. Best for large enterprises requiring high limits and complex coverage. Known for responsive claims handling and industry expertise.
AIG
One of oldest cyber insurance providers with deep market experience. Offers CyberEdge® coverage with broad first-party and third-party protection. Strong in healthcare, financial services, and retail sectors. Provides risk engineering services and breach response support. Suitable for organizations needing high limits and global coverage.
Travelers
Broad market carrier offering CyberRisk coverage for companies of all sizes. Known for competitive pricing in mid-market segment. Provides CyberVault® portal with risk management resources. Good option for organizations seeking package policies combining cyber with other coverages. Strong claims service and financial stability.
Beazley
Specialist cyber insurer particularly strong in technology sector. BBB Cyber & Tech coverage includes pre-breach services, breach response, and comprehensive liability protection. Known for understanding technology company risks and providing specialized coverage. Excellent for tech startups, SaaS companies, and digital businesses. Offers proactive risk management services.
Coalition
Insurtech company combining insurance with active cyber risk monitoring. Provides Coalition Active Insurance® including continuous security scanning and threat intelligence. Platform-driven approach with fast quotes and seamless experience. Best for SMBs and technology companies seeking modern digital-first insurance experience. Includes free security tools for policyholders.
CNA
Strong in regulated industries including healthcare and financial services. NetProtect® 360° coverage addresses both pre-breach and post-breach needs. Known for understanding complex compliance requirements and regulatory landscape. Provides breach coach services and extensive vendor network. Suitable for organizations in highly regulated sectors requiring specialized expertise.
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Get Security AssessmentCoverage Comparison
First-Party Coverage
Direct costs and losses to your organization:
| Coverage Area | What's Covered | Typical Sublimits |
|---|---|---|
| Incident Response | Forensics, investigation, containment | Full policy limit |
| Business Interruption | Lost income, extra expenses | 50-100% of limit |
| Data Restoration | Recovery, reconstruction of data | $500K-$5M |
| Cyber Extortion | Ransomware payments, negotiation | $500K-$10M |
| Notification Costs | Breach notification, credit monitoring | $1M-$5M |
| Public Relations | Crisis management, reputation | $250K-$1M |
| Legal Costs | Attorneys, consultants | Full policy limit |
Third-Party Liability Coverage
Claims and lawsuits from affected parties:
- Network Security Liability: Claims from system security failures
- Privacy Liability: Unauthorized disclosure of confidential information
- Media Liability: Online content claims (defamation, copyright)
- Regulatory Defense: Government investigations, fines
- PCI Fines: Payment Card Industry non-compliance penalties
- Breach of Contract: Failing contractual security obligations
Common Exclusions
What cyber insurance typically doesn't cover:
- Prior Acts: Breaches occurring before policy effective date
- Intentional Acts: Deliberate misconduct by insured
- Infrastructure Damage: Physical damage to hardware
- Bodily Injury: Physical harm to individuals
- Intellectual Property: Theft of trade secrets (some coverage available)
- War/Terrorism: Acts of war, terrorism (varies by policy)
- Certain State-Sponsored Attacks: Nation-state cyber warfare
Pricing and Costs
Premium Factors
| Factor | Impact on Premium |
|---|---|
| Industry | Healthcare (+50-100%), Retail (+30-50%), Tech (baseline) |
| Revenue | Higher revenue = higher premium (but lower rate) |
| Data Volume | More records = higher premium |
| Security Controls | Strong controls = 20-40% discount |
| Claims History | Prior claims = 30-100% increase |
| Coverage Limit | Higher limits = higher premium (diminishing rate) |
| Deductible | Higher deductible = lower premium (10-30%) |
Typical Pricing Ranges
| Organization Size | Typical Limit | Annual Premium | % of Limit |
|---|---|---|---|
| Small (< $10M revenue) | $500K-$1M | $3K-$10K | 0.6-1.0% |
| Mid-Market ($10M-$100M) | $2M-$10M | $15K-$75K | 0.75-0.75% |
| Enterprise ($100M-$1B) | $10M-$50M | $75K-$500K | 0.75-1.0% |
| Large Enterprise (> $1B) | $50M-$100M+ | $500K-$3M+ | 1.0-3.0% |
Underwriting Requirements
Security Control Requirements
Most insurers now mandate minimum security controls:
- Multi-Factor Authentication (MFA): Required for all remote access, admin accounts, email (universal requirement)
- Endpoint Detection and Response (EDR): Next-gen antivirus with behavioral detection
- Regular Backups: Offline/immutable backups tested regularly
- Patch Management: Critical patches within 30 days
- Email Security: Advanced filtering, anti-phishing
- Privileged Access Management: Restricted admin privileges
- Security Awareness Training: Annual training including phishing simulation
- Incident Response Plan: Documented procedures
- Vulnerability Management: Regular scanning and remediation
Application Questions
Expect detailed questions about:
- Organization details (revenue, employees, industry, locations)
- Data types collected (PII, PHI, payment card, financial)
- Number of records stored
- Third-party vendors with data access
- Security controls implemented (MFA, EDR, backups, etc.)
- Prior cyberattacks or data breaches
- Pending regulatory investigations
- Security certifications (SOC 2, ISO 27001, etc.)
- Cybersecurity budget and staffing
- Business continuity and disaster recovery plans
Supporting Documentation
- Security policies and procedures
- Recent vulnerability scan or penetration test reports
- Incident response plan
- Business continuity plan
- Vendor risk management program
- Security awareness training records
- Backup and recovery procedures
Meet Cyber Insurance Requirements
subrosa helps organizations implement security controls meeting cyber insurance underwriting standards.
Build Security ProgramSelecting a Cyber Insurance Provider
Evaluation Criteria
| Factor | What to Consider |
|---|---|
| Financial Strength | A.M. Best rating (A or higher preferred) |
| Coverage Terms | Breadth of coverage, exclusions, sublimits |
| Industry Expertise | Experience in your sector |
| Claims Reputation | Speed, fairness, support quality |
| Breach Response | Vendor network, response resources |
| Risk Services | Security assessments, training, tools |
| Pricing | Competitive premium for coverage provided |
| Policy Flexibility | Customization options, endorsements |
Questions to Ask Providers
- What security controls are required for coverage?
- What are the policy exclusions and limitations?
- What are sublimits for key coverage areas?
- Is ransomware payment covered? Under what conditions?
- How are business interruption losses calculated?
- What is your average claims response time?
- Do you provide breach response vendor panel?
- Are pre-breach risk services included?
- What is the deductible structure?
- How do you handle coverage disputes?
- What is your claims denial rate?
- Can you provide client references in our industry?
Application Process
Step-by-Step Process
- Initial Assessment (Week 1): Gather organizational information and security documentation
- Application Completion (Week 1-2): Complete detailed questionnaire with broker assistance
- Supplemental Questions (Week 2-3): Respond to underwriter follow-up questions
- Security Review (Week 2-4): Underwriter evaluates security controls and risks
- Quote Presentation (Week 3-4): Receive quotes from multiple carriers
- Negotiation (Week 4-5): Negotiate terms, coverage, pricing
- Bind Coverage (Week 5-6): Select provider and activate policy
Timeline Expectations
- Simple Applications: 2-3 weeks (SMBs with strong controls)
- Standard Applications: 4-6 weeks (mid-market organizations)
- Complex Applications: 6-12 weeks (enterprises, complex risks)
- Difficult Risks: 8-16 weeks (prior claims, weak controls)
Accelerating Approval
- Work with experienced cyber insurance broker
- Prepare documentation in advance
- Respond promptly to underwriter questions
- Implement required security controls early
- Consider insurtech providers for faster quotes (Coalition, Cowbell)
Claims Process
When to File a Claim
- Data Breach: Unauthorized access to confidential data
- Ransomware Attack: Systems encrypted with extortion demand
- Business Interruption: Extended outage affecting operations
- Regulatory Investigation: Government inquiry about security practices
- Liability Claim: Lawsuit from affected customers or partners
- Cyber Extortion: Threat to release data or conduct attack
Claims Process Steps
- Immediate Notification: Report incident to insurer (typically 24-48 hours)
- Claims Assignment: Claims adjuster assigned to case
- Breach Response: Insurer coordinates forensics, legal, PR vendors
- Investigation: Determine scope, cause, and impact
- Cost Documentation: Track all response and recovery costs
- Ongoing Communication: Regular updates to claims adjuster
- Settlement: Reimbursement for covered costs
Claims Documentation
- Incident timeline and details
- Forensic investigation reports
- Legal opinion letters
- Notification costs (letters, call center, credit monitoring)
- Business interruption calculations
- Vendor invoices (all response costs)
- Regulatory correspondence
- Evidence of security controls
Cyber Insurance Market Trends 2026
Key Trends
- Market Stabilization: Premiums stabilizing after 2021-2023 surge
- MFA Mandate: Universal requirement across all policies
- EDR Requirement: Next-gen endpoint protection increasingly required
- Ransomware Scrutiny: Stricter underwriting for ransomware coverage
- War Exclusions: Enhanced exclusions for nation-state attacks
- Capacity Expansion: More carriers entering market, increasing capacity
- Parametric Policies: Emerging coverage with automatic payouts
- Pre-Breach Services: Increased focus on loss prevention
- Supply Chain Focus: Greater scrutiny of vendor risks
- Cloud Security: Specific coverage for cloud infrastructure
Underwriting Evolution
Insurers increasingly using:
- Automated security posture assessment tools
- External vulnerability scanning
- Dark web monitoring for leaked credentials
- Third-party security ratings (BitSight, SecurityScorecard)
- Continuous monitoring of policyholders
Frequently Asked Questions
What are cyber security insurance companies?
Cyber security insurance companies provide specialized insurance policies covering financial losses from cyberattacks, data breaches, ransomware, business interruption, and cyber extortion. Leading providers include Chubb, AIG, Travelers, Beazley, Coalition, and CNA, offering coverage ranging from $1 million to $100 million+ with premiums based on revenue, industry, security posture, and claims history. Policies cover incident response costs, legal fees, notification expenses, regulatory fines, business interruption, cyber extortion payments, and liability claims, with typical premiums ranging 0.5-3% of coverage amount annually ($5K-$30K for $1M coverage) depending on organizational risk profile and security controls.
How much does cyber insurance cost?
Cyber insurance costs vary significantly based on organizational factors: Small businesses (< $10M revenue) pay $3K-$10K annually for $500K-$1M coverage (0.6-1.0% of limit). Mid-market organizations ($10M-$100M revenue) pay $15K-$75K for $2M-$10M coverage (0.75%). Enterprises ($100M-$1B revenue) pay $75K-$500K for $10M-$50M coverage (0.75-1.0%). Large enterprises (> $1B revenue) pay $500K-$3M+ for $50M-$100M+ coverage (1.0-3.0%). Premiums depend on industry (healthcare pays 50-100% more), data volume, security controls (strong controls reduce premiums 20-40%), claims history (prior claims increase 30-100%), and deductible chosen (higher deductible reduces premium 10-30%).
What security controls do cyber insurers require?
Most cyber insurers now mandate minimum security controls: (1) Multi-factor authentication (MFA) for all remote access, administrator accounts, and email, this is universal requirement; (2) Endpoint detection and response (EDR) providing next-generation antivirus with behavioral detection; (3) Regular offline/immutable backups tested for restoration; (4) Patch management applying critical updates within 30 days; (5) Email security with advanced filtering and anti-phishing; (6) Privileged access management restricting admin privileges; (7) Security awareness training including annual phishing simulation; (8) Documented incident response plan; (9) Regular vulnerability scanning and remediation. Organizations lacking these controls face coverage denial or significantly higher premiums.
Does cyber insurance cover ransomware payments?
Yes, most cyber insurance policies cover ransomware payments under cyber extortion coverage, typically with sublimits ranging $500K-$10M depending on policy. However, coverage comes with conditions: Organizations must have implemented required security controls (MFA, EDR, backups), payment must be last resort after exhausting recovery options, insurer typically requires using approved negotiator, payment must comply with sanctions laws (OFAC), and organizations must document decision-making process. Some insurers exclude ransomware for organizations with weak security controls. Coverage also includes ransom negotiation costs, cryptocurrency transaction fees, and forensic investigation, but not business improvement costs (only restoration to pre-incident state).
What's the difference between first-party and third-party coverage?
First-party coverage pays for direct costs and losses to your organization: incident response, forensics, business interruption, data restoration, cyber extortion payments, notification costs, legal fees, and public relations. Third-party coverage pays for claims and lawsuits from others: customer class action lawsuits, regulatory fines and penalties, PCI DSS fines, breach of contract claims, privacy liability, network security liability, and regulatory defense costs. Most organizations need both, first-party coverage addresses immediate breach costs (typically 60-70% of claims), while third-party coverage protects against lawsuits and regulatory actions (typically 30-40% of claims but potentially much higher in large breaches). Comprehensive policies include both coverages under single limit.
How long does cyber insurance application take?
Cyber insurance application timelines vary by organization complexity: Simple applications (SMBs with strong controls) take 2-3 weeks. Standard applications (mid-market organizations) take 4-6 weeks. Complex applications (enterprises, complicated risks) take 6-12 weeks. Difficult risks (prior claims, weak controls, high-risk industries) take 8-16 weeks. Timeline includes application completion (1-2 weeks), underwriter review and supplemental questions (2-3 weeks), quote comparison (1 week), and negotiation (1-2 weeks). Insurtech providers like Coalition and Cowbell offer faster quotes (sometimes within days) for smaller organizations meeting security requirements. Working with experienced broker and preparing documentation in advance significantly accelerates process.
What are common cyber insurance exclusions?
Common cyber insurance exclusions include: (1) Prior acts, breaches occurring before policy effective date (though some policies offer limited prior acts coverage with extended reporting period); (2) Intentional acts, deliberate misconduct by insured parties; (3) Infrastructure damage, physical damage to hardware (covered by property insurance); (4) Bodily injury, physical harm to individuals; (5) War and terrorism, acts of war, cyber warfare, state-sponsored attacks (increasingly broad exclusions); (6) Known vulnerabilities, issues known but not remediated before breach; (7) Regulatory non-compliance, fines for failing to meet security standards; (8) Betterment, upgrades beyond restoring to pre-incident state. Read policy exclusions carefully and discuss coverage gaps with broker.
Can small businesses get cyber insurance?
Yes, many insurers target small business market with policies starting at $100K-$500K coverage for $1K-$5K annual premiums. Providers specializing in SMB cyber insurance include: Coalition (insurtech with $250K-$15M limits), Cowbell (fast quotes for $100K-$5M), Hiscox ($25K-$1M limits), Chubb small business program, Travelers CyberFirst (package policies), and The Hartford (bundled coverage). Small businesses benefit from packaged policies combining cyber with general liability and property coverage. Insurtech providers offer streamlined application processes taking days instead of weeks. However, small businesses still must implement minimum security controls (MFA, backups, EDR) to qualify for coverage, insurers increasingly rejecting applications lacking basic protections.
How do I reduce cyber insurance premiums?
Reduce cyber insurance premiums through: (1) Implement strong security controls, MFA, EDR, offline backups, vulnerability management, email security can reduce premiums 20-40%; (2) Obtain security certifications, SOC 2, ISO 27001 demonstrate mature security; (3) Regular penetration testing, annual testing shows proactive security; (4) Increase deductible, higher deductibles reduce premiums 10-30%; (5) Security awareness training, documented programs with phishing simulation; (6) Incident response planning, tested incident response plans show preparedness; (7) Vendor risk management, documented third-party security assessments; (8) Lower coverage limits, reduce to minimum necessary; (9) Bundle policies, package cyber with other coverages; (10) Work with broker, experienced brokers negotiate better rates and identify best-fit insurers.
Should I use a broker for cyber insurance?
Yes, experienced cyber insurance brokers provide significant value: (1) Market access, brokers place coverage with multiple insurers finding best fit; (2) Negotiation power, leverage relationships for better terms and pricing; (3) Application assistance, help complete complex questionnaires accurately; (4) Coverage comparison, analyze policies identifying coverage gaps; (5) Claims support, advocate during claims process; (6) Market intelligence, understand trends, underwriting requirements, emerging coverage. Brokers typically paid via commission from insurers (not out of client pocket). Choose brokers specializing in cyber insurance with experience in your industry. Large organizations benefit from specialist cyber brokers (Marsh, Aon, Willis Towers Watson); small-to-mid-market companies can use regional brokers with cyber expertise. Direct purchase from insurtechs (Coalition, Cowbell) works for small organizations with straightforward risks.
Conclusion
Cyber security insurance has evolved from optional coverage to essential business protection as cyber threats intensify and average breach costs exceed $4.45 million. Leading providers including Chubb, AIG, Travelers, Beazley, Coalition, and CNA offer comprehensive coverage protecting organizations against incident response costs, regulatory fines, business interruption, ransomware payments, and liability claims, with premiums ranging from $3K for small businesses to millions for large enterprises.
Selecting the right cyber insurance company requires evaluating financial strength, coverage terms, industry expertise, claims reputation, and breach response capabilities while understanding underwriting requirements increasingly mandating MFA, EDR, offline backups, and comprehensive security controls. Organizations with strong security posture benefit from lower premiums and better coverage terms, making cybersecurity investment both risk mitigation and insurance optimization strategy.
The cyber insurance market continues evolving with stabilizing premiums after 2021-2023 surge, expanding capacity as new carriers enter market, and increasing focus on loss prevention through pre-breach risk services. Organizations should work with experienced brokers specializing in cyber insurance, implement required security controls, maintain comprehensive documentation, and regularly reassess coverage needs as business and threat landscape evolve.
subrosa helps organizations meet cyber insurance requirements and reduce premiums through comprehensive security services including security assessments, vulnerability management, incident response planning, and security program development, providing documented evidence of security controls strengthening insurance applications while improving overall security posture.