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Cyber insurance

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How much does cyber insurance cost?

The cost of cyber insurance in New Zealand typically averages between $40 – $80 per month. Several factors determine the overall price, including the industry sector, the business security, risk management practices, and the claims history.

What is the average cost of cyber insurance? 

Businesses in New Zealand typically pay between $40 – $80 or around $750 annually for their cyber insurance.

If your business handles a significant volume of sensitive data, operates in an industry with high cyber risk like finance or healthcare, or has a history of cyber incidents, the cost of your cyber insurance is likely to be higher. Similarly, a lack of robust cyber security measures can increase your risk profile, leading to higher premiums.

Understanding cyber insurance cost factors 

The cost of a cyber insurance policy isn’t one-size-fits-all. There are several elements that can affect your premium. Here are three of the most impactful:

The Size and Type of Your Business

The more extensive your operations, the greater your potential exposure to cyber threats. Large corporations with high volumes of sensitive data are likely to pay higher premiums due to the increased risk. This includes companies in sectors like finance, healthcare, and retail that typically process a lot of customer information.

The Level of Cyber Security in Place

Insurance providers take a close look at your current cyber security practices. Businesses with robust protections in place – like firewalls, encryption, regular audits, and employee training – may pay less than those without. Why? Because you’re less likely to make a claim if you’ve got strong security measures already in place.

Past History of Cyber Incidents

Like any insurance, your past plays a part. If your business has previously been the victim of a cyber attack, your risk profile increases. Insurance companies may consider you more likely to be targeted in the future, which could lead to higher premiums.

Cyber provides cost effective protection for your business

Despite the cost, cyber insurance is an essential component of any modern business strategy. Here’s why:

Protection Against Financial Loss

Cyber attacks can result in significant financial damage. From downtime and lost business to the cost of rectifying the breach, the expenses can quickly escalate. Cyber insurance can cover these costs, helping your business get back on its feet.

Support in Managing Reputation

A cyber attack doesn’t just harm your business financially; it can also damage your reputation. With a cyber insurance policy, you gain access to public relations and crisis management services that can mitigate this damage and restore public trust.

Business Interruption Due to a Cyber Event

A major cyber event can interrupt your business operations, resulting in lost revenue and potentially even contractual penalties. Cyber insurance policies often include business interruption coverage, which can help your company cope with the financial impact during downtime and aid in speedy recovery.

It’s crucial to have cyber insurance if:

  • You handle sensitive customer data
  • Your business relies heavily on IT
  • You store data in the cloud
  • Your employees use mobile devices for work

How can you save on cyber insurance?

Saving on cyber liability while ensuring adequate protection for your business is achievable.

Implement Strong Cyber Security Measures

As mentioned earlier, insurers consider the strength of your cyber security when determining premiums. Investing in robust cyber security measures can not only reduce your risk of a cyber attack but also lower your insurance costs.

Regularly Review and Update Your Coverage

Businesses evolve, and so do their risks. Regularly reviewing your policy ensures that you’re only paying for coverage that you need. For instance, if you’ve recently downsized or tightened your cyber security measures, you may be eligible for lower premiums.

Engage our cyber insurance brokers at Gerrards

Here at Gerrards, we know the ins and outs of cyber insurance. Our team of insurance brokers is equipped to guide you through the process of selecting the most suitable and affordable insurance policy. We have an extensive network of insurance providers, and our job is to negotiate on your behalf, compare offers, and secure the best rates for you.

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