Four top cyber liability insurance providers for small enterprises.
To safeguard your business from financial losses, you may require different types of insurance. If you handle any sensitive customer data, such as names, addresses, or financial information, cyber insurance is a must-have. Although it may seem like an additional expense, cyber insurance can shield businesses of all sizes and industries from data breaches and other cybersecurity threats before and after an incident.
Cyber liability is not typically included in standard business liability insurance, so you may need to either add it to your policy or purchase it separately. CNBC Select has compiled a list of the top cyber insurance companies to consider for this coverage. (For more information on our methodology, please see below.)
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Best for access to experts
If you want access to cybersecurity coaching experts, Travelers is worth considering. Its cyber liability insurance covers litigation expenses, forensic investigations, business interruption, cyber extortion, and more.
The Travelers eRiskHub provides exclusive resources to help prevent network, cyber, and privacy events, and offers prompt support in case of an incident.
Best for variety of coverage options
If you require a range of cyber liability coverages and services, Nationwide is the ideal choice. The coverage includes defense and settlement costs for claims made by third parties in the event of the loss of sensitive third-party information and breach remediation, which includes notification, credit monitoring, computer forensics, and breach coaching. Additionally, the policy offers system interruption loss, cyber extortion, and first-party asset restoration costs. Customers can also purchase several coverage add-ons to enhance their policy.
Nationwide provides legal consultations, network vulnerability testing, and access to risk management tools like RiskHub and Cyber Safety powered by Zeguro as part of its preventative services.
Best for an instant quote
If you require coverage in a hurry, NEXT is the ideal option. It provides cyber liability insurance to safeguard against data breaches, ransomware, wire fraud, cyber-attacks, and hardware failures. As per its website, you can obtain quotes instantly and insurance coverage in under 10 minutes.
NEXT provides 24/7 expert assistance to businesses following a cyber attack.
Best for low coverage minimum
AmTrust Financial offers cyber insurance coverage for business owners who require a minimum of $50,000. According to Insureon, small businesses that handle a few thousand records of customer personally identifiable information (PII) should have at least $1 million in coverage. However, if a business cannot afford higher coverage, some coverage is better than none.
In all 50 states and Washington DC, AmTrust coverage is available.
More on our picks for best cyber insurance companies for small businesses
Travelers
Businesses of all sizes can obtain cyber insurance from Travelers, which has an A++ rating for financial strength by AM Best. Cyber coaching services are included at no extra cost and cover three main areas: the HCL Technologies Cybersecurity Coach helpline teaches prevention measures, the HIPAA Coach helps safeguard personal health information, and the Breach Coach® provides post-breach services. To obtain a quote, you must work with an agent.
Claims available online?
Yes
Nationwide
Nationwide is a well-known brand in the insurance sector. It provides cyber insurance coverage that includes enhancements for regulatory fines, no retention for notification costs, and dependent network business interruption coverage. Additionally, Nationwide offers loss prevention services such as security and compliance training, network security vulnerability testing, legal consultations, and industry-specific policy assistance.
Claims available online?
Yes
NEXT
NEXT's cyber liability insurance provides coverage for legal fees, forensic and PR costs following a data breach, credit monitoring, and any penalties your business may face. However, it does not cover medical bills, accusations of libel or slander, illegal activity, intentional wrongdoing, or damage to someone else's personal property.
Claims available online?
Yes
AmTrust Financial
AmTrust Financial offers comprehensive cyber insurance coverage, including ransom payments, system restoration costs, business interruptions, and more. To obtain a quote, you must work with an agent.
Claims available online?
Yes
What cyber liability insurance covers
Cyber liability insurance can mitigate the financial impact of data breaches and cyberattacks on your business.
Cyber liability insurance can cover a range of expenses related to cyberattacks, including investigative services, data recovery, identity recovery, and system repair. It can also cover lost income, damages to customers or partners, including legal costs. In certain situations, it may also cover ransom payments and regulatory fines.
What's not covered by cyber liability insurance
Your cyber insurance policy may not cover intentional harm, illegal activities, property damage, and loss of future profits. To understand what your insurer will and will not cover, it's important to double-check your policy.
Why trust CNBC Select?
Our mission at CNBC Select is to deliver top-notch service journalism and in-depth consumer advice to our readers, enabling them to make well-informed decisions with their money. Each cyber insurance review we publish is the result of thorough reporting by our team of expert writers and editors, who possess extensive knowledge of insurance products. In order to identify the best insurance companies, we conducted extensive research, collecting over 100 data points on more than a dozen companies. At CNBC Select, we take pride in our journalistic standards and ethics, and we ensure that all our content is created without any input from our commercial team or external third parties. For more information on our methodology, please refer to our website.
Our methodology
Various factors were compared by CNBC Select when analyzing dozens of cyber insurance companies for small businesses.
We prioritized availability, coverage offered, and access to support while evaluating the best insurance companies. Additionally, we assessed the ease of obtaining quotes and the industries served where available.
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