According to Fitch Ratings, cyber insurance is the fastest-growing type of insurance in the United States. This growth is fueled by a significant rise in cyber incidents, especially ransomware attacks, which have resulted in more claims and higher financial losses in the past two years.
But evaluating cyber insurance providers can be challenging.
To gain an understanding of the available coverage options, we have compiled a list of the top cyber insurance companies in the US. This resource provides reliable options for businesses seeking a cyber insurance provider that can cater to their unique requirements.
What is Cyber Security Insurance?
Cyber insurance shields policyholders against hazards related to IT infrastructure and operations. Human error and third-party vulnerabilities are the main causes of cyber attacks. These seemingly negligible risks have the potential to result in huge expenses for lost business, new IT infrastructure, and/or victim compensation.
How Big is the Cyber Insurance Market?
The cyber insurance sector in the United States is thriving and is projected to reach a value of $27 billion within a few years. The top rung of cyber insurers dominates the market, which collectively accounts for a good chunk of the industry. These insurers offer a range of policies tailored to the specific needs of businesses across various industries.
Fitch estimates that standalone and packaged cyber insurance premiums written directly by insurers increased by 74% in 2021, reaching nearly $5 billion. In contrast, the overall property/casualty insurance industry had a growth rate of 9%. This growth is driven by increased awareness of the risks faced by policyholders and higher demand for cyber insurance coverage. Standalone cyber coverage, which makes up about two-thirds of the industry’s premiums, grew by 92% in 2021. Insurers are increasingly focusing on standalone coverage to reduce exposure to “silent” cyber risks and provide clearer coverage terms. However, a significant portion of cyber risks remains uninsured.
What is the Difference Between a Cyber Standalone Insurance Policy and a Cyber Risk Extension?
Cyber standalone insurance refers to a dedicated insurance policy specifically designed to cover cyber risks and incidents. It is a comprehensive insurance solution focused solely on cyber-related risks and liabilities. This type of policy is independent and separate from other insurance policies a business may have. Cyber standalone insurance provides specialized coverage tailored to address the unique challenges and financial implications of cyber incidents. It typically includes coverage for expenses related to data breaches, cyberattacks, business interruption, notification costs, legal liabilities, and other cyber-specific risks.
On the other hand, cyber risk extension is an add-on to another insurance policy. Also referred to as a cyber endorsement, it is added as a rider to an existing insurance policy. The purpose of the extension is to provide some level of cyber-related coverage within the existing policy structure. While this approach may offer some level of cyber protection, it may not provide the same depth and breadth of coverage as a dedicated standalone cyber insurance policy.
What Does Cyber Insurance Cover?
Most cyber insurance policies consist of several sections that provide coverage for different aspects of a cyber incident. Let’s break down these sections:
- First-Party Coverage: This section covers the direct costs you incur in responding to a cyber incident. It includes expenses for breach notification, incident response, forensic investigation, and public relations. It also covers the costs of IT consulting and remediation to mitigate the impact of the cyber event. These costs can be significant, sometimes reaching up to $10 to $15 per affected customer.
- Liability to Third Parties: This is a crucial section that protects you against lawsuits brought by clients or third parties. It covers claims related to network security breaches, privacy violations, and management liability. It can also include coverage for privacy breaches, confidentiality breaches, and unauthorized access to data. Legal defense costs and settlement expenses are typically covered under this section.
- Criminal Acts: This section reimburses you for losses resulting from fraudulent activities like funds transfer fraud, social engineering, ransomware attacks, identity theft, hacking of telephone systems, phishing, and electronic impersonation of your business. It also covers theft and misuse of electronic identity and customer funds held in escrow.
- Asset and Income Protection: This section covers the costs of repairing and restoring your data and applications. It includes expenses for hiring consultants and employee overtime. Additionally, it provides coverage for business interruption costs and loss of profits due to system outages following a cyber event. Loss of profits arising from damage to your reputation is also included.
- Media Content Liability: This section covers legal liability arising from defamation lawsuits related to media content in published documents, such as social media, websites, or blogs. It also provides coverage for accidental infringement of intellectual property rights.
- Court Attendance Costs: The policy may reimburse your expenses for attending court or legal proceedings related to a claim made under the policy.
What are the Best Cyber Insurance Companies in the US?
The answer to this question is going to depend on the business sector, company size, and many other factors. Let’s discuss them.
Things to Consider When Evaluating Cyber Security Insurance Providers
Coverage Offerings: Assess the coverage options provided by the insurance provider.
Policy Limits and Deductibles: Review the policy limits and deductibles offered by the provider. Ensure that the coverage limits are sufficient to meet your organization’s needs and that the deductibles are reasonable and manageable.
Risk Management Support: Does the potential provider offer risk assessment services to help identify vulnerabilities and mitigate potential cyber risks?
Reputation and Financial Stability: Research the reputation and financial stability of the insurance provider
Industry Expertise: Assess whether the provider has expertise in your specific industry. Some insurance companies specialize in certain sectors and offer tailored coverage options to address industry-specific cyber risks effectively.
Policy Exclusions and Limitations: Pay close attention to policy exclusions and limitations. Understand what is not covered by the policy to avoid surprises during the claims process. Ensure that the exclusions align with your risk profile and that any potential gaps in coverage are adequately addressed.
The suitability of a cyber insurance provider varies depending on business needs and specific policy requirements. It is advisable to consult with insurance brokers or conduct thorough research to assess whether a cyber insurance policy aligns with your specific requirements. With that being said, we have curated a list of cyber insurance companies and specified their main market niches.
Our Top 5 Cyber Insurers
Best Overall: Chubb
Chubb, a Swiss industry giant and one of the largest insurance companies globally, not only holds the position of the top cyber insurer in the US but also enjoys a prominent presence worldwide. With its country headquarters located in Whitehouse Station, New Jersey, Chubb is well-established in the American market. Within its comprehensive cyber insurance portfolio, Chubb offers three prominent products designed to address the diverse cyber risks faced by businesses.
Best for Health Institutions: The Doctors Company
When it comes to collecting data from individuals in the medical industry, such as doctors and patients, it’s essential to have specialized cyber medical insurance coverage. The Doctors Company is an insurance carrier that specifically focuses on medical malpractice insurance in the United States, making them a suitable choice for businesses in this field.
With $6.5 billion in managed assets and 84,000 members, The Doctors Company is a trusted and popular option for businesses worldwide. Their strong financial standing is reflected in their “A” credit rating from S&P, ensuring that they have the financial capacity to fulfill claim payouts effectively.
Best for Financial Institutions: AXL XL
AXA XL has established its position as a dominant player in the cyber security insurance market, with a significant market share exceeding 10%. This popularity is particularly notable among financial businesses who value the extensive suite of first- and third-party coverage provided by AXA XL. With their comprehensive cyber insurance solutions, AXA XL offers robust protection against a wide range of risks
Best for Retailers and Small Businesses: Travelers
Travelers is an excellent choice for cyber insurance coverage, particularly for tech companies and public organizations, due to their inclusion of social engineering fraud in their policies. Unlike many other providers, Travelers recognizes the significance of social engineering attacks and offers coverage for such incidents.
Best for Cyber Risk Liability Insurance: Zurich
Zurich, a well-established insurance company with a rich history dating back to 1872, offers both cyber liability and data breach insurance. However, it is in the realm of cyber liability insurance where Zurich truly excels, providing comprehensive coverage for the financial repercussions of cyberattacks. With Zurich’s cyber liability insurance, businesses can find robust protection against the legal and financial implications that can arise from cyber incidents.
Role of Risk Assessment in Cyber Insurance Procurement
The decision to procure cyber insurance has become increasingly intricate, particularly in the face of a surge in both the frequency and cost of ransomware attacks over the past three years. This surge amplifies the need for coverage but has also led to heightened scrutiny from insurers, resulting in increased premiums and more stringent restrictions on capacity and coverage.
With the insights from thorough risk assessments, insurance brokers are uniquely positioned to guide organizations through insurance procurement. By analyzing an organization’s cybersecurity posture, brokers can identify vulnerabilities, critical assets, and potential points of weakness. This detailed understanding empowers brokers to craft policies that provide comprehensive coverage, address specific risks, and mitigate potential threats.
The evolving threat landscape has compelled insurers to go beyond compliance with industry standards. Many have established a minimum control baseline, demanding evidence of core controls such as multi-factor authentication, privileged access management, vulnerability and patch management, and robust backup solutions. However, the emphasis is shifting towards risk assessments, wherein cyber underwriters seek a deeper understanding of an organization’s cyber resilience journey.
A risk-based approach, emphasizing identifying and prioritizing cybersecurity risks specific to an organization, has become instrumental in developing cyber resilience. Buyers who adopt a proactive stance, engaging in discussions about their cyber risk journey with insurers, contribute to smoother negotiations and potentially secure more tailored and effective cyber policies.
Our Top 4 Insurance Brokers
Brown & Brown, Inc. adopts a client-centric approach to risk assessments in the cyber insurance domain. With a commitment to delivering integrated insurance and risk management solutions, Brown & Brown’s Risk Solutions team goes beyond conventional practices. They prioritize understanding clients’ values, goals, and objectives, employing evidence-based insights and proprietary methodologies. The team thoroughly analyzes the insurance program to ensure alignment with the organization’s risk appetite and strategic business goals.
Brown & Brown’s Cyber In-Site, Powered by Centraleyes
What makes Cyber In-Site a standout solution? It’s all about precision. Brown & Brown understands that one-size-fits-all approaches don’t cut it in today’s digital landscape. That’s why Cyber In-Site offers a tailored analysis that digs deep into your organization’s unique risks and goals. It’s like having a personalized cyber risk roadmap that guides you every step of the way.
But Cyber In-Site isn’t just about analysis—it’s about action. Brown & Brown goes beyond simply identifying risks; they empower you with strategies to mitigate them effectively. Whether optimizing your security protocols, implementing cyber hygiene best practices, or fine-tuning your incident response plan, Cyber In-Site equips you with the tools you need to stay resilient in the face of cyber threats.
Aon plc approaches risk assessments in the cyber insurance domain by offering a suite of services, including security risk assessments, cyber security testing, and cyber impact analysis. Aon focuses on helping clients understand and quantify their risk, particularly identifying critical assets and vulnerabilities and evaluating core cybersecurity capabilities.
Marsh & McLennan Companies, Inc., takes a comprehensive approach to risk assessments, leveraging benchmarking and analytics to help clients understand and quantify potential effects of cyber incidents. Their commitment extends to designing tailored insurance programs aligned with existing policies, ensuring a strategic fit for each client.
Willis Towers Watson introduces the Cyber Risk Profile Diagnostic (CRPD), a tool providing a customized, enterprise-level perspective into cyber-related threats. The CRPD clarifies an organization’s overall security posture, identifies potential impacts from cyber scenarios, and delivers tailored recommendations prioritized by their security impact.
How Much Does Cyber Insurance Cost?
The cost of cyber insurance in the US can vary depending on factors such as company size, industry, revenue, level of coverage, and cybersecurity measures in place. Premiums can range from $500 to over $5,000 annually, with average estimates at around $1,600 per year for $1 million of coverage.
While cyber insurance provides financial protection, it should not be relied upon as the sole defense against cyber threats. Businesses must also take robust precautions to mitigate risks and maintain insurability. Employing cybersecurity measures and best practices is essential in conjunction with obtaining cyber insurance.
How Does Centraleyes Support Your Cyber Insurance Goals?
With Centraleyes, you will benefit from a revolutionary approach to cyber insurance by streamlining application processes, increasing approval rates, lowering insurance premiums, and building cyber resilience. The Centraleyes platform offers valuable uses for insurance brokers, carriers, and clients. We’ll break down each of these use cases in the next section.
Centraleyes for Brokers
With Centraleyes, you gain a thorough understanding of your clients, present their best possible risk profile to the insurance marketplace, and develop strong relationships with carriers to ultimately create a seamless, automated workflow that traverses the complex cyber insurance application process.
With our platform, you can:
- Work with multiple carriers and applications in a streamlined process
- Access preloaded carrier-specific applications
- Automatically map between various frameworks and insurance threshold requirements
- Achieve better premium rates for clients
- Take an integrated risk management approach to cyber insurance
- Increase the percentage of policy renewals
Insurance carriers have become increasingly selective about which businesses they are willing to underwrite and have raised their coverage threshold to strict standards of minimum cyber hygiene. As a result, insurance premiums have risen sharply across all industries and many cyber insurance brokers have been turning away prospective clients due to the increasingly stringent pre-application and onboarding requirements demanded by insurers.
Centraleyes for Carriers
Need to build customized insurance portfolios that align with the security posture and risk management goals of your clients?
We can help you with that.
Cut through the arduous complexity of calculating premiums based on spreadsheets and statistical data. Access hard numbers and financially quantified risk assessments to gain an understanding of client cyber risk maturity. Our platform, designed for a wide range of sectors and risks, is streamlined and agile, enabling you to adapt quickly to changing market conditions while offering customized policies and contract certainty.
Our powerful cloud-based platform gives you real value by providing an integrated platform that generates actionable deep insights from the darknet, public net, and perimeter scanning.
With our platform, you will:
- Mitigate client risks and offer competitive premium rates
- Increase the percentage of policy renewals
- Base initial quotes on clear and accurate data
- Simplify underwriting procedures
Centraleyes risk management platform helps you execute policies that deliver on the expectations of customers and brokers alike by reducing risk and premiums.
Centraleyes for Businesses Seeking Cyber Insurance
Cyber insurance coverage requires a high level of due diligence on the part of prospective policyholders. To get the most out of your application process, quantify your cyber risk exposure to better assess your insurance needs. By increasing your cyber resilience and mitigating risk, you can lower premiums and reduce the chance of being breached.
Our powerful cloud-based platform gives you real value by providing an integrated platform that generates automated deep insights, gap mitigation plans, and risk scenarios.
Cyber resilience starts with an intuitive, in-depth risk assessment. Centraleyes risk assessment and quantification tools are designed to determine the likelihood and the financial impact of cyber risks and to identify security gaps in your systems. Our powerful platform generates the actionable insights you need to understand what your cyber risk level means to your business.
As insurance carriers become increasingly selective about which businesses they are willing to underwrite, insurers have raised their coverage threshold to strict standards of minimum cyber hygiene. Centraleyes’ platform identifies vulnerabilities in your system, facilitates risk mitigation, and ultimately gets you to a state of cyber-readiness so you can approach the insurance application process empowered with our expertise and a strong cyber posture.
- Shortens onboarding time
- Facilitates data collection analysis and creates visual reports
- Quantifies numeric and financial cyber metrics of your cyber risk exposure
- Identifies security gaps and generates actionable insights
Need to Figure out How Much Cyber Insurance You Need?
The Centraleyes platform contains a wildly popular cyber risk quantification tool called the “Primary Loss Calculator”. This advanced risk quantification tool provides the clarity and visibility around cyber insurance that your business needs to drive critical decisions.
By conducting cyber risk quantification, you can weigh potential risk scenarios and their losses against cyber insurance policy limits and accurately assess your insurance needs.