Business Cyber Liability Insurance Cost Estimator

Estimate your annual cyber liability insurance premium based on your business profile, industry risk factors, data handling practices, and security controls.

Your business's total annual gross revenue.
Industries handling sensitive data or critical infrastructure carry higher premiums.
Count of customer PII, PHI, financial, or payment card records stored or processed.
Maximum payout the insurer will cover per policy period.
Higher deductibles reduce your annual premium.
Stronger security controls significantly reduce your premium.
Prior claims history is a major underwriting factor.
Higher remote workforce percentage increases attack surface exposure.
Third-party access increases supply chain breach risk.

Formula

Step 1 – Base Revenue Premium:
Base_Revenue = Annual_Revenue × 0.001 (0.10% of revenue, capped $500–$500,000)

Step 2 – Records Surcharge:
Records_Cost = Sensitive_Records × $0.015

Step 3 – Coverage Limit Factor (non-linear):
Coverage_Factor = (Coverage_Limit ÷ $1,000,000) ^ 0.65

Step 4 – Deductible Discount:
Deductible_Discount = 1 − (Deductible ÷ Coverage_Limit) × 2.5 (clamped 0.60–1.00)

Step 5 – Remote Work Surcharge:
Remote_Factor = 1 + (Remote_Pct ÷ 100) × 0.30 (up to +30%)

Step 6 – Final Premium:
Premium = (Base_Revenue + Records_Cost) × Coverage_Factor × Deductible_Discount × Industry_Mult × Security_Mult × Claims_Mult × Remote_Factor × ThirdParty_Mult

Step 7 – Floor / Ceiling:
Annual_Premium = max($500, min(Premium, $2,000,000))

Assumptions & References

  • Base rate of 0.10% of revenue reflects the industry median starting point for SMB cyber policies (Marsh, Chubb, Coalition underwriting guidelines, 2023–2024).
  • Per-record cost of $0.015 is derived from IBM/Ponemon "Cost of a Data Breach Report 2023" average breach cost of ~$165/record; insurers typically load ~1% of expected loss into premium.
  • Coverage limit uses a power curve (exponent 0.65) reflecting that doubling coverage does not double premium — consistent with actuarial pricing for excess layers (ISO, NCCI).
  • Deductible discount formula reflects standard insurer practice: higher deductibles shift more first-dollar risk to the insured, reducing premium proportionally.
  • Industry multipliers sourced from Coalition Cyber Insurance Index 2023, Hiscox Cyber Readiness Report 2023, and Beazley Breach Insights.
  • Security posture multipliers reflect underwriter credits/debits for controls: MFA adoption, EDR, SOC 2/ISO 27001 certification, and incident response planning (NIST CSF alignment).
  • Prior claims loading (up to 2×) is consistent with standard insurance underwriting practice for loss history surcharges.
  • Remote work surcharge of up to +30% reflects expanded attack surface from BYOD, home networks, and VPN usage (Travelers Risk Index 2023).
  • Third-party vendor factor reflects supply chain risk; major breaches (SolarWinds, MOVEit) have driven underwriters to price this explicitly.
  • This tool does not constitute an insurance quote. Consult a licensed commercial insurance broker for binding coverage.

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