Cyber insurance represents the pinnacle of strong data security practices.
This is due to the well-known fact that no digital security tools, posture, or policy are invulnerable.
It is because no matter how strong the defense, all it takes is a stronger attack to compromise your sensitive information.
Just as no car on the road is safe—and as a result, we must insure our vehicles—no data stored online is safe.
But this is just half of the rationale for investing in cyber insurance cybersecurity.
The other reason is the fact that companies that engage in commerce online are, at least for short periods, in possession of the payment data of their customers.
Should your patrons suffer a successful cyber attack while engaging with your brand online, two things could happen:
Even worse, both could happen.
So far, we have simplified the issue for the sake of brevity.
But the fact is that only a strong cyber insurance policy can protect you against bad actors online with any degree of certainty.
Because this is well understood, several outstanding insurance carriers offer cyber insurance.
Here, we've listed the top 5 cyber insurance companies.
In the opinion of our in-house team of cyber insurance experts, these are the cream of the crop in this field.
However, cybersecurity insurance is a complex subject, and therefore each of our top picks has their specialties, their own virtues, and their own shortcomings.
This means that while one might be best overall, another might still be better suited for your online security needs.
What follows is intended to help you pick the best cyber insurance companies for your data security insurance needs.
Because there is so much diversity between even the best cyber insurance companies, choosing the right one for you
must start with a close examination of your organization's unique online security requirements.
The first step to choosing the right carrier and policy is to know your vulnerabilities and the potential costs of having those vulnerabilities successfully exploited.
From there, it's good to seek the advice of cybersecurity and cybersecurity insurance experts.
The reason you should consult both types of experts is that there are legal and technological issues to consider, and both are highly complex.
A cybersecurity expert can tell you where you need financial coverage.
An expert in insurance itself can explain how compliance failures and civil suits could cripple your organization financially and legally.
With the advice they provide in mind, there are at least four important factors to consider:
Now that you have looked at your cybersecurity needs, let's look at how to evaluate cyber insurance companies.
Cybersecurity insurance may be the new hot thing in data security best practices, but it is not a wholly new idea.
Many inexperienced insurance providers are jumping on the bandwagon who don't have much experience.
You also want to work with a provider that has experience insuring companies in your industry.
As mentioned, there are several different types of cybersecurity insurance.
Some providers offer certain policies and some specialize in others.
This is why you need to work with a company that understands your needs.
You want to work with a reputable insurer, one with a track record of supporting businesses like yours and not doing whatever it takes to deny claims.
This brings us to the claims process.
These should be straightforward with no unreasonable hoops to jump through.
This is an area where checking for reviews can be a great help.
You want to work with a carrier that offers plenty of support.
Attack prevention is infinitely superior to damage mitigation.
Your insurance provider has an interest in helping you avoid having to submit a claim.
Therefore, a good one will help you to do just that with consulting and IT support.
Finally, the cost of insurance should suit your budget, and be commensurate with your cybersecurity needs and vulnerabilities.
The good news is that we have done some of the hard work for you.
The following cyber insurance companies represent the top-quality level of service, support, resources, and reputation in the industry.
All you need to do is choose the one that meets your budget and data vulnerabilities best.
As a cybersecurity and cyber insurance company, Aon takes a no-nonsense approach to serving its customers.
They start with robust guidance on the ways to protect an organization against risk and volatility in digital spaces.
As mentioned above, cyber insurance companies have an interest in supporting their customers this way.
By showing that they understand this right off the bat, Aon demonstrates that they understand the issues surrounding cyber insurance very well.
As the North American wing of a Swiss-based company, Zurich launched its cyber insurance offerings for middle market companies just this year, in 2023.
This means they may lack experience in this area.
However, they have been offering cybersecurity insurance in other areas since 1998, making them an undeniable leader in this service sector.
They cover up to $25 million in cyber attack-related damages and protect their clients in a number of other ways, as well.
Founded in 1897, CNA Insurance specializes in business coverage and is among the most well-established insurance providers.
As such, they are likely to offer some of the finest and most robust regulatory compliance guidance available.
Their cyber coverage offerings are also among the most comprehensive that you are likely to find, making them a good choice if their policies suit your budget.
Founded in 1901, Hiscox is the U.S. branch of a conglomerate with offices in 13 countries and over 2,000 employees.
They have been given an A rating by A.M. Best and have earned a total 4.8-star rating from their many online customer reviews.
They claim to be the nation's top small business insurer, and they have the reputation to back that claim up.
Chubb Insurance is the oldest and most well-established insurance carrier on our list.
They have among the best customer service availability you are likely to find, which is a must with cyber insurance.
They offer a huge range of services, including cybersecurity insurance, though their offerings in this insurance category may be lacking.
It would be tough to go wrong with your pick of these top-tier cyber insurance companies, as long as you do your homework to find the right match for your business.
Be sure to examine their policy offerings, services, and cost profile carefully to find the best match.
For more advice on picking the best cybersecurity insurance carrier for your needs, get in touch today.