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The Best Cyber Insurance Companies for 2022

Best Cyber Insurance Companies

Cyber insurance is becoming increasingly important as companies rely more on digital systems and as cyberattacks, ransomware attacks, and data breaches become more prevalent. Many companies manage sensitive data, including credit card information, customer names and addresses, Social Security numbers, or other confidential information. If your company is affected by a cyberattack, you could find yourself dealing with costly lawsuits, data restoration expenses, and regulatory fines.

To determine the best cyber insurance companies, AdvisorSmith considered a number of factors, including financial strength ratings from AM Best and Standard & Poor’s, customer satisfaction data from several J.D. Power studies, complaint ratings from the National Association of Insurance Commissioners, available features and options, and availability of information and ease of use of the insurers’ websites. We scored insurers out of a total of five points and only included those companies that scored 4.0 or higher.

The Best Cyber Insurance Companies

RankCompanyAdvisorSmith Rating
1Hiscox4.9 / 5.0
2Chubb4.8 / 5.0
3The Hartford4.7 / 5.0
4AIG4.7 / 5.0
5CNA4.6 / 5.0
6Arch4.5 / 5.0
7Hanover4.5 / 5.0
8Intact4.4 / 5.0
9Beazley4.3 / 5.0
10Axis4.3 / 5.0

*Not all insurance companies provide coverage in all states.

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More on the Best Cyber Insurers

AdvisorSmith found and rated the top commercial cyber insurance companies on a five-point scale, based on financial strength, customer satisfaction, ease-of-use, and a number of other factors. While many insurers were evaluated, only those with a score of over 4.5 are listed below.

4.9 / 5.0 

Hiscox received A ratings from both AM Best and Standard & Poor’s. Hiscox’s cyber liability insurance is designed for small businesses and includes coverage for common costs resulting from cybercrimes, including breaches, extortion, and social engineering fraud. Insureds can upgrade their coverage to include digital media coverage for copyright infringement, invasion of privacy, and other claims that arise from your website or social media presence.

  • Offers a variety of insurance products
  • Offers discounts on its products
  • Has a mobile app
  • Website is easy to navigate
  • Limited policies to protect your business
  • May need to work with multiple providers to get full protection for your company
  • Does not have a local agent network
  • Only available in 49/50 states
  • Not a BBB accredited company
  • Mixed customer reviews

AdvisorSmith Rating For Hiscox

» Learn more from Hiscox.

» Read our Hiscox Commercial Review.

4.8 / 5.0

Chubb has an A++ rating from AM Best and an AA rating from Standard & Poor’s, indicating excellent financial strength. The company has offered cyber liability insurance since 1998 and offers several customizable cyber liability programs for businesses of all sizes and from all industries, including those industries that have a high frequency of cyber incidents. Chubb offers risk management information and assessments, along with a variety of services to minimize risk and mitigate losses.

  • An extensive network of agents and brokers
  • Offers a wide variety of commercial insurance policies for numerous industries
  • Superior ratings from most major ratings firms, indicating financial stability
  • Offers discounts for home-based businesses
  • Good customer service
  • Some businesses may find Chubb's coverage options to be too comprehensive (and expensive) for their needs
  • Limited online quoting system
  • No live chat support on the website
  • Not a BBB-accredited company

AdvisorSmith Rating For Chubb

» Learn more from Chubb.

» Read our Chubb Commercial Review.

4.7 / 5.0

The Hartford has been given an A+ rating by both AM Best and Standard & Poor’s. The insurer offers two cyber policies: data breach insurance for small businesses and cyber liability insurance for larger businesses. Data breach policies can also be customized with business income and extra expense coverage, prior acts coverage, and extortion coverage. The Hartford’s Cyber Center provides information on how to avoid incidents and maintain online safety. The Hartford also offers online quoting.

  • Flexible, customizable business owner's policy
  • Quick online quote process
  • Clear explanations that define what’s covered and not covered under a plan
  • You can get a quote online, but you have to talk to an agent in order to complete a purchase
  • There are reported Workers Comp and FMLA claims issues
  • The Hartford does not do business in Alaska, Hawaii and New Jersey

AdvisorSmith Rating For The Hartford 

» Learn more from The Hartford.

» Read The Hartford Commercial Review.

4.7 / 5.0

AIG has an A rating from AM Best and an A+ from Standard & Poor’s. The company offers data, analytics, and detailed threat scoring and analysis to help insureds understand and deal with their cyber risks. Additional loss prevention services can provide protection from ransomware, phishing attempts, and other threats. AIG also offers a 24/7 claims hotline.

» Learn more from AIG.

4.6 / 5.0

CNA received an A rating from AM Best and an A+ from Standard & Poor’s. CNA’s cyber insurance products are available to businesses of all sizes. CNA’s CyberPrep cyber risk program is available to all policyholders and is designed to help insureds identify, mitigate, and respond to cyber threats. An online portal provides resources and tools to help policyholders learn about cybersecurity and prepare for incidents.

  • Customized insurance plans
  • Wide variety of coverage options
  • Offers bundle insurance options for small business
  • Customer service reviews are less than stellar
  • Getting a quote requires contacting an agent

CNA Commercial Insurance Rating

» Learn more from CNA.

» Read our CNA Commercial Review.

Brokers for Cyber Insurance

Because cyber insurance is a specialized coverage that can vary widely depending on your business’s individual needs, it’s common for companies to obtain coverage through a broker. A broker can help you find the most cost-effective and complete coverage from an appropriate insurer. Below, we’ve highlighted a few of the top brokers that offer cyber insurance.

Embroker is backed by Munich Re, a financially strong insurer with an A+ rating from AM Best and an AA- rating from Standard & Poor’s. Embroker offers online quotes and claims, in addition to assistance that is available 24/7 via live chat, email, or phone. Embroker also provides a personal account manager who can help with insurance needs.

Embroker Pros and Cons

As with any insurance provider, it’s essential to weigh the pros and cons of Embroker:

  • Instant quotes and online buying
  • Industry-specific coverage
  • Expert advisors
  • Real-time claims tracking
  • Low premiums
  • 24/7 customer service

  • Not as long-established as other companies
  • No official ratings available
  • No mobile app

AdvisorSmith Rating for Embroker

» Learn more from Embroker.

» Read our Embroker Commercial Review.

CoverageSmith is a leading online broker specializing in insurance for small businesses. The company provides a modern, tech-enabled solution for businesses, allowing them to quickly get the insurance they need, completely online, from some of the most trusted insurance carriers in the world, including Chubb, The Hartford, AIG, and CNA.

» Learn more from CoverageSmith.

CoverWallet is an online broker backed by Aon, an insurer with an A rating from AM Best. The company provides online quotes, assessments to help you understand what types of insurance your business needs, and online claims processes. CoverWallet also provides information and reading material on cyber liability. It may be possible to manage your pre-existing insurance policies through CoverWallet.

  • You can get free quotes from multiple insurance carriers
  • They offer many coverage options
  • You can create your own convenient bundle package
  • You can use their online tools to pay your premiums, file claims and download a certificate of insurance for free
  • While the platform is owned by AON it is not clear who is offering the policy you are requesting until the end of the application. CoverWallet is not a business insurer itself
  • You may have to call in to complete your application

AdvisorSmith Rating For CoverWallet 

» Learn more from CoverWallet.

» Read our CoverWallet Commercial Review.

How much does cyber insurance cost?

The average cost of cyber insurance in the U.S. in 2020 was $1,485 per year, but premiums have been increasing in 2021 due to a rise in cyberattacks. The costs of insuring your business against data breaches and hacking attacks varies based upon the nature and size of your business, as well as the state in which your business is located. Below, we list the average cost of cyber insurance in each state, along with the difference between the state average and the national average.

StateAverage Cost of Cyber InsuranceDifference from National Average
Alaska$1,532.89 3.23%
Alabama$1,539.40 3.67%
Arkansas$1,646.50 10.88%
Arizona$1,581.50 6.50%
California$1,430.18 -3.69%
Colorado$1,521.67 2.47%
Connecticut$1,593.62 7.32%
District of Columbia$1,539.25 3.66%
Delaware$1,446.47 -2.59%
Florida$1,529.82 3.02%
Georgia$1,450.54 -2.32%
Hawaii$1,519.46 2.32%
Iowa$1,505.73 1.40%
Idaho$1,483.70 -0.08%
Illinois$1,434.59 -3.39%
Indiana$1,484.06 -0.06%
Kansas$1,501.38 1.11%
Kentucky$1,587.10 6.88%
Louisiana$1,623.94 9.36%
Massachusetts$1,380.59 -7.03%
Maryland$1,471.18 -0.93%
Maine$1,467.39 -1.18%
Michigan$1,339.33 -9.81%
Minnesota$1,708.11 15.03%
Missouri$1,509.00 1.62%
Mississippi$1,472.55 -0.84%
Montana$1,478.29 -0.45%
North Carolina$1,421.49 -4.27%
North Dakota$1,464.42 -1.38%
Nebraska$1,485.64 0.05%
New Hampshire$1,431.99 -3.57%
New Jersey$1,615.25 8.77%
New Mexico$1,355.36 -8.73%
Nevada$1,507.55 1.52%
New York$1,616.70 8.87%
Ohio$1,553.68 4.63%
Oklahoma$1,513.03 1.89%
Oregon$1,462.50 -1.51%
Pennsylvania$1,466.49 -1.24%
Rhode Island$1,541.58 3.81%
South Carolina$1,398.83 -5.80%
South Dakota$1,489.45 0.30%
Tennessee$1,500.20 1.03%
Texas$1,459.22 -1.73%
Utah$1,515.10 2.03%
Virginia$1,467.83 -1.15%
Vermont$1,457.70 -1.83%
Washington$1,449.80 -2.37%
Wisconsin$1,523.03 2.56%
West Virginia$1,629.64 9.74%
Wyoming$1,426.89 -3.91%

Besides the location of your business, a number of other factors can greatly affect the premiums that you pay for cyber insurance. Insurance companies will take into account the nature of your business, the number of sensitive employee and customer records you store, whether your business stores credit card and banking information on your customers, and the types of security defenses your company has undertaken. Additionally, if your company has a history of cyber insurance claims, or if it has been attacked or hacked in the past, your premiums may be higher.

What does cyber insurance cover?

Cyber insurance covers financial losses from data breaches, hacking, viruses, denial of service attacks, and other similar cyber events. Cyber insurance has two major components: third-party liability coverage and first-party coverage. 

First-party coverage protects your company when you incur expenses from a data breach or when your company is hacked. You may choose to purchase either or both types of coverage.

Third-party coverage provides protection when a customer, vendor, partner, or other party sues you for allowing a data breach to happen. 

First-Party Coverage

First-party coverage provides protection against the financial losses your business incurs due to a data breach, hack, or other cyber event.

Data Breach

First-party coverage can provide for the costs of responding to and recovering from a data breach. These costs can include:

Data Recovery

If your company’s electronic data is lost, damaged, or corrupted due to a hack, virus, or denial of service attack, you can be covered under first-party coverage. This coverage also extends to data belonging to others stored on your systems.

First-party coverage will reimburse your company for the costs to restore or recover the lost or damaged data, as well as the costs to hire consultants to help you restore or repair your data.

Business Interruption

Business interruption coverage is also available on many cyber insurance policies. A typical business income insurance policy that is attached to a commercial property policy only covers perils that cause physical damage. Usually, commercial property coverages do not provide coverage for electronic data.

If the loss or destruction of data leads to a disruption in your ability to do business, this coverage can pay for the loss of business income your business experiences.


First-party coverage can also cover cyberextortion. If your business is threatened with damage to your computer systems or networks unless you pay a ransom, this insurance can provide coverage.

First-party coverage can also provide coverage for the money you spend to respond to the extortion demand, in addition to any ransom you pay. The insurer’s consent is usually required before you pay these expenses.

Third-Party Liability Coverage

The third-party liability coverage provided by cyber insurance provides protection against lawsuits filed by clients or others against your business as a result of a breach of their security or privacy. These lawsuits can accuse your business of failing to adequately protect data you possess that belongs to customers, employees, vendors, or others.

Some of the claims and costs that third-party liability may cover include:

What are the most frequent cyber insurance claims?

Businesses have faced an increasing number of cyberattacks in recent years, particularly from common cyberattacks such as ransomware and social engineering fraud. The most frequent causes of cyber insurance claims are hacking, ransomware, phishing, and employee negligence. Having cyber insurance can protect your business against the financial consequences of some of these attacks.

Hacking claims account for some of the most common cyber insurance claims. If a hacker breaks into your company’s computer network and steals data, your company may be liable for a variety of costs to recover from and mitigate the damage from the hack. These costs may include forensic services to determine the cause and extent of the hack, legal costs to defend against third-party lawsuits related to the hack, notification and credit monitoring services for affected individuals, public relations costs, and regulatory fines and penalties.

Ransomware attacks occur when malicious software is installed on your company’s systems and your company’s data or critical software is threatened unless you pay a ransom. In these cases, cyber insurance can pay for the costs of the ransom so that your company’s data or systems can be recovered. Many cyber liability policies provide very limited coverage for ransomware or cyber extortion attacks, with coverage sublimits as low as $25,000, even when the cyber liability policy has a much higher total limit.

Phishing attacks induce your employees to disclose passwords or other login credentials to hackers. These attacks can happen when employees click on malicious links embedded in emails or on the web. They can also occur over the phone when your employees are tricked into disclosing passwords or other sensitive information. With phishing attacks, criminals can log into your company’s systems and steal data or conduct unauthorized financial transactions.

Employee negligence claims can arise from something as simple as an employee losing a laptop that contains sensitive customer or employee data. In the case of employee negligence, your company could be liable for lawsuits related to lost data, notifying affected individuals and providing them with credit monitoring services, public relations costs, and fines and penalties.


In order to determine the best cyber insurance companies, AdvisorSmith reviewed several factors before coming to a conclusion. Factors that were evaluated by AdvisorSmith include the insurer’s financial strength, customer satisfaction, policy options, and ease-of-use. By assessing these important factors we were able to determine the best cyber insurance companies and coverage to meet your individual business needs.

Financial Strength

The best cyber insurance companies are those that have the financial strength to pay out claims in the event of a data breach or cyber attack. In order to determine an insurer’s financial strength, AdvisorSmith reviewed their rating from A.M. Best and Standard & Poor’s. These are two of the most reputable financial rating agencies in the industry.

Customer Satisfaction

Customer satisfaction is another important factor that we considered when determining the best cyber insurance companies. In order to assess customer satisfaction, we review data from J.D. Power’s U.S. Small Business Insurance Study. This study surveys customers of small businesses across the country and rates insurers on a number of important factors including claims satisfaction, price, and customer service. Additionally, we considered complaint ratings from the National Association of Insurance Commissioners (NAIC) to determine customer satisfaction.

Policy Options

When determining the best cyber insurance companies, we also assess the policy options that each insurer offers. Cyber insurance policies can vary greatly in terms of the coverage they provide. It is important to choose an insurer that offers a policy that meets your specific business needs.


Finally, we also considered the user-friendliness of each insurer’s website and policy application process. In today’s digital age, it is important to choose an insurer that makes it easy to obtain a quote and purchase a policy online.

Using our own proprietary scoring algorithm, we weighted each factor based upon what we believe to be important for small and midsize business owners. Our algorithm outputted a score out of five total points. While we considered a number of insurers, we only included in this article those companies that scored 4.0 or higher.

The AdvisorSmith rankings are based upon our editorial team’s quantitative and qualitative analysis, and they are intended to serve only as a guide for our readers. We encourage our readers to conduct their own research when selecting an insurer, shop and compare quotes, and make a decision based on their own unique business needs. 

AdvisorSmith is in no way compensated for any of our reviews.

Expert Commentary

AdvisorSmith spoke with the following experts to provide critical insight on cyber insurance for business owners.

Tom Dugas

  • AVP/Chief Information Security Officer
  • Duquesne University
Tom's Answers

Yair Levy

  • Professor, Information Systems and Cybersecurity
  • Nova Southeastern University
Yair's Answers

Andrew Green

  • Assistant Professor, Information Security and Assurance
  • Kennesaw State University, Coles College of Business
Andrew's Answers

Bilge Karabacak

  • Lead Faculty, Computing Sciences and Mathematics
  • Franklin University
Bilge's Answers

Bruce Young

  • Professor, Cybersecurity & Information Assurance
  • Harrisburg University of Science and Technology
Bruce's Answers

Q. Where do you see the cyber insurance market trending, and what are the main insurability challenges?

Q. Should small businesses be concerned about cyber risk?

Q. How can a business effectively organize and manage cyber risk?

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