Cybersecurity Insurance Premium Estimator
Estimate your annual cybersecurity insurance premium based on revenue, industry risk profile, security maturity, and desired coverage limits. Results are indicative estimates for budgeting purposes.
Your estimated premium will appear here.
Formula
Annual Premium = Base Premium × Industry Multiplier × Revenue Factor × Employee Factor × Records Factor × Deductible Credit × Controls Multiplier × Incident Multiplier × Third-Party Multiplier
- Base Premium = (Coverage Limit ÷ 1,000) × $3.00 — anchored to market base rate of $3.00 per $1,000 of coverage
- Revenue Factor = 1 + 0.08 × log₁₀(Revenue ÷ $1,000,000) — logarithmic scaling of revenue exposure
- Employee Factor = 1 + 0.04 × log₁₀(Employees) — endpoint and phishing surface scaling
- Records Factor = 1 + 0.06 × log₁₀(Records + 1) — breach notification cost driver
- Deductible Credit = 1 − 0.10 × log₁₀(Deductible ÷ $5,000 + 1) — clamped to [0.80, 1.10]
- Controls Multiplier = MFA × EDR × Backup × Training — each control reduces premium independently
- Industry Multiplier: Healthcare 1.5×, Financial 1.4×, Critical Infrastructure 1.6×, Technology 1.0×, Non-Profit 0.9×, etc.
- Incident Multiplier: No incidents 1.0×, 1 prior incident 1.25×, 2+ incidents 1.60×
- Third-Party Multiplier: None 1.0×, Managed 1.10×, Unmanaged 1.20×
Assumptions & References
- Base rate of $3.00 per $1,000 of coverage reflects 2023–2024 U.S. cyber insurance market median for SMB/mid-market (Marsh, Woodruff Sawyer market reports).
- Industry multipliers derived from Verizon DBIR 2024 breach frequency by sector and Coalition Cyber Insurance Claims Report 2023 loss ratios.
- Security control discounts (MFA, EDR, backups, training) are consistent with underwriter questionnaire credit schedules published by Chubb, Beazley, and Coalition.
- Prior incident loading (1.25×–1.60×) reflects standard adverse experience surcharges used in actuarial pricing models (ISO Cyber Risk Circular).
- Revenue and employee factors use logarithmic scaling to reflect diminishing marginal risk at very large firm sizes, consistent with Munich Re cyber actuarial guidance.
- Records factor reflects average U.S. per-record breach cost of $165 (IBM Cost of a Data Breach Report 2023) driving notification and remediation costs.
- Deductible credit is anchored at $5,000; higher deductibles transfer more first-party risk to the insured, reducing insurer exposure and thus premium.
- This tool does not account for: ransomware sub-limits, social engineering riders, business interruption waiting periods, or reinsurance market conditions — all of which affect final quoted premiums.
- Estimates are for budgeting and benchmarking only. Actual premiums require a full underwriting submission and broker negotiation.