AdvisorSmith evaluated financial strength, customer satisfaction, ease-of-use, and more to find the best commercial cyber insurance companies.
Cyber insurance is becoming increasingly important as companies rely more on digital systems and as cyberattacks 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.
Cyber insurance protects your business against the liability and property losses caused by cyberattacks such as hacks, data breaches, denial of service attacks, and viruses. Many insurers offer cyber liability policies, and coverage can vary widely. It’s important to choose an insurer that is financially strong, meaning it will be able to pay out large claims even if a disaster affects the company. It’s also a good idea to consider how satisfied insurers’ customers are with their services.
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To determine the best cyber insurance companies, AdvisorSmith considered a number of factors, including financial strength ratings from AM Best and Standard & Poors, 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
|1||Chubb||5.0 / 5.0|
|2||The Hartford||4.9 / 5.0|
|3||AXA XL||4.7 / 5.0|
|4||Travelers||4.7 / 5.0|
|5||Zurich||4.6 / 5.0|
|6||Tokio Marine||4.5 / 5.0|
|7||HSB||4.5 / 5.0|
|8||AIG||4.4 / 5.0|
|9||CNA||4.3 / 5.0|
|10||Sompo International||4.3 / 5.0|
|11||Beazley||4.0 / 5.0|
|12||AmTrust Financial||4.0 / 5.0|
|13||Hiscox||4.0 / 5.0|
*Not all insurance companies provide coverage in all states.
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 4.0 or more are listed below.
5.0 / 5.0
Chubb has an A++ rating from AM Best and an AA rating from Standard & Poors, 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.
4.9 / 5.0
The Hartford has been given an A+ rating by both AM Best and Standard & Poors. 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.
4.7 / 5.0
AXA received an A+ rating from AM Best and an AA- from Standard & Poors. In addition to covering a wide variety of cyber incidents and costs for clients from many industries, the company offers risk mitigation resources through a network of industry partners. Risk management tools and resources are available to help clients avoid incidents. A 24-hour hotline allows policyholders to report claims at any time.
4.7 / 5.0
Travelers Insurance is considered financially strong, with a rating of A++ from AM Best and AA from Standard & Poors. Travelers offers cyber insurance policies for a variety of industries, including technology businesses, public entities, financial institutions, and nonprofits. The company offers customizable cyber insurance policies to businesses of all sizes, including specialized policies for small businesses. Pre-breach services are provided by Symantec, and policies may include services such as breach coaches to help you navigate any incidents that occur.
4.6 / 5.0
Zurich has a rating of A+ from AM Best and AA- from Standard & Poors. Cyber liability policies can be tailored to clients’ individual needs. Zurich offers cyber risk assessments that will analyze your business and identify improvements to your cybersecurity. The company can also help you with training for employees at all levels, including C-suite and security team training, and management metrics.
4.5 / 5.0
Tokio Marine has been given a rating of A++ from AM Best and A+ from Standard & Poors. Tokio Marine’s pre-incident offerings include briefings, training, GDPR assessments and training, response planning, and vulnerability assessments. If an incident occurs, Tokio Marine provides crisis management and post-incident analysis and advice.
4.5 / 5.0
HSB has an A++ rating from AM Best and an AA- rating from Standard & Poors. HSB’s cyber liability offerings are designed to protect small and midsize businesses from cyber risks. The company offers 24-hour claims assistance to help clients restore data and lessen the impact of any cyber attacks. The company’s risk management solutions can provide website monitoring, security training, and security policy templates.
4.4 / 5.0
AIG has an A rating from AM Best and an A+ from Standard & Poors. 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.
4.3 / 5.0
CNA received an A rating from AM Best and an A+ from Standard & Poors. 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.
4.3 / 5.0
Sompo received an A+ rating from both AM Best and Standard & Poors. Sompo offers worldwide coverage to businesses of all sizes, including health care, financial institutions, manufacturing, and professional services businesses. A variety of liability coverages are available, with additional coverage available by endorsement. Sompo offers a 24-hour breach hotline and guaranteed breach assistance within two to four hours. The company’s Cyber Risk Portal provides risk mitigation tools and information.
4.0 / 5.0
Beazley received an A rating from AM Best. The company helps clients cope with cyber incidents through a dedicated business unit called BBR Services. This unit can coordinate experts and resources to respond to incidents that arise, as well as offering pre-breach services and tools to prevent incidents from occurring.
4.0 / 5.0
AmTrust Financial has an A- rating from AM Best. Its customizable policies can cover a variety of common costs incurred through a cyber incident. AmTrust offers policies that are specifically designed to protect small businesses. Policies also include coverage for website media content liability; this coverage can protect you from violations of privacy, copyright infringement, or other risks that may arise from your website.
4.0 / 5.0
Hiscox received A ratings from both AM Best and Standard & Poors. Hiscox’s cyber liability insurance is designed for small businesses and includes coverage for common costs resulting from cyber crimes, including breaches, extortion, and social engineering schemes. 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.
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.
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.
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.
Embroker is backed by Munich Re, a financially strong insurer with an A+ rating from AM Best and an AA- rating from Standard & Poors. 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.
Cyber Insurance Pricing
The average cost of cyber insurance in the U.S. is $1,485 per year. 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.
|State||Average Cost of Cyber Insurance||Difference from National Average|
|District of Columbia||$1,539.25||3.66%|
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.
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In order to determine the best cyber insurance companies, AdvisorSmith considered a number of factors that reflect an insurer’s financial strength, customer satisfaction, and ease-of-use. Using our own proprietary scoring algorithm, we weighted the various factors based upon what we believe to be important for small and midsize business owners. These factors included carrier ratings from AM Best and Standard & Poors, customer satisfaction data from several J.D. Power studies, complaint ratings from the National Association of Insurance Commissioners, an evaluation of each insurer’s policies, options, and website features, and more. 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.