As more businesses increase their online presence, security risks are drastically expanding as well. Today, it is important to protect your business from threats such as data theft, ransomware, and malware. Neglecting to get insured against these threats could affect your reputation and financial standing.
However, when it comes to spend, how much should you be allocating towards cyber insurance and security?
What Is Cyber Insurance?
Cyber insurance is the best way of offsetting your costs and liability in the aftermath of a cyberattack. Many cyber insurance policies cover a wide range of incidents ranging from data breaches to business email compromise.
How Much Do Small Businesses Pay for Cyber Insurance?
According to IBM, the cost of a data breach reached an all-time high during the pandemic. A business in the U.S. spend an average of $4 million to resolve a data breach. All of this to say, any cyber insurance policy that costs less than that figure will be a positive return on investment in the case of an attack.
The average cyber insurance cost for small businesses is about $1,485 each year. This means that an average small business pays about $124 per month to get cyber insurance, assuming a $ 1million coverage limit and a $10,000 deductible.
However, in order to get insurance, businesses are also often required to have security controls such as anti-virus and data backups. Most insurers will require security as a part of the application process, and businesses without these features will be either rejected or required to pay higher costs. The costs of implementing adequate security could add up, especially if you need to pay an outside firm to help set it up.
Is Cyber Insurance Worth It?
Still, there are very good reasons for you to get cyber insurance for your business. As mentioned earlier, data breaches are becoming more common and more costly. 60% of small businesses go bankrupt after a hack.
With a cyber insurance policy in place, you will be protected from the consequences of an attack. Beyond just protection, you would also want to prevent hacks from happening in the first place with strong security controls.
How to Get the Best Priced Insurance
Do you plan on protecting your business with cyber insurance and security, but still want to keep costs as low as possible? 1Fort combines both cyber insurance and all the security tools you need, starting at just $29 per month. This reduces your risk, and therefore your premium, by as much as possible.