Cyber attacks cost small businesses an average of $120,000. Cybersecurity insurance can help—but policies are getting stricter and more expensive.
What Cyber Insurance Covers
- Data breach response — Notification, credit monitoring, PR
- Business interruption — Lost income during downtime
- Ransomware payments — Sometimes, with conditions
- Legal defense — Lawsuits from affected customers
- Regulatory fines — HIPAA, PCI, state privacy laws
What Insurers Now Require
Getting cyber insurance is harder than it used to be. Most policies now require:
- Multi-factor authentication (MFA) on all accounts
- Endpoint detection and response (EDR)
- Regular backups with offsite storage
- Security awareness training
- Patch management program
How Much Does It Cost?
For small businesses, expect $1,000-5,000/year for $1M coverage. Rates are rising 25-50% annually due to ransomware claims.
The Catch-22
You need good security to get affordable insurance, but implementing that security costs money too. The good news: the security measures required for insurance are exactly what you should be doing anyway. We can help you meet these requirements as part of our managed IT services.