How much does business insurance for cybersecurity companies cost?

Cybersecurity companies pay an average of $83 per month, or $990 annually, for tech E&O insurance. This policy bundles errors and omissions insurance with cyber insurance at a lower cost than buying the policies separately.

Errors and omissions insurance, also known as professional liability insurance, provides financial protection against claims of professional negligence. For example, if you install faulty cybersecurity software in a client's computer, the result could be a lawsuit.

Tech E&O adds third-party cyber insurance to this coverage, which extends protection in case your mistake or oversight leads to a data breach or cyberattack on a client's business.

This is the average E&O insurance for cybersecurity services companies that buy from Insureon:

Insurance premium: $83 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $2,500

The cost of errors and omissions insurance depends on factors such as the coverage limits you choose, the size of your business, and the cybersecurity products or services you offer.

Cybersecurity consulting companies pay an average of $150 per month, or $1,799 per year, for cyber insurance. This policy is vital for businesses that store customer data, such as credit card numbers, Social Security numbers, and email addresses.

Cyber insurance covers the cost of complying with your state's data breach laws after a cyber incident. It can pay for legal fees, customer notification costs, and data recovery efforts related to a data breach or cyberattack. You may also see this policy referred to as cyber liability insurance or cybersecurity insurance.

The cost of cyber insurance depends on your cyber risks and the amount of personal information handled by your IT security software company.

The average cost of a fidelity bond is $89 per month for cybersecurity software companies, or $1,067 annually. Some clients, especially in the financial services industry, may require a bond before they will use your services.

Fidelity bonds reimburse your client if one of your employees commits fraud, theft, or forgery, including illegal electronic funds transfer. This amount must be paid back to the company that issued the bond.

The cost of a fidelity bond is typically a small percentage of the bond amount.

Cybersecurity companies pay an average of $30 per month, or $365 per year, for general liability insurance.

A general liability policy helps pay for legal costs from accidents that harm clients or damage their property, along with advertising injuries. For example, it would cover costs if an employee accidentally damages a client's laptop and they sue over the damage.

This is the average general liability policy for cybersecurity businesses that buy from Insureon:

Premium: $30 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Insureon’s licensed agents typically recommend a business owner’s policy (BOP), which combines general liability insurance with commercial property insurance at a discount to protect your computers, cybersecurity equipment, and other business property.

For information security companies, the average premium for a business owner's policy is $46 per month or $550 per year. You can also add business interruption insurance to protect against financial losses from a forced closure due to a fire or storm.

The cost of general liability insurance depends on factors such as the coverage limits you choose, the size of your business, the amount of foot traffic, and any subcontractors or additional insured endorsements. Learn more about how your premium is calculated.

Cybersecurity startups pay an average of $34 per month, or $411 annually, for workers' compensation insurance.

This policy covers medical expenses and disability benefits when you or an employee suffers a work-related bodily injury or illness. For example, an employee could suffer from carpal tunnel syndrome after years of working at a keyboard, or injure their back lifting a heavy monitor.

Cybersecurity startup companies that have employees typically must purchase workers' comp to comply with state requirements and avoid penalties. It's also recommended for sole proprietors, as health insurance plans can deny claims for injuries related to your job.

Most policies include employer's liability insurance, which covers the cost of lawsuits related to workplace injuries.

The cost of workers' comp depends on the number of employees and their occupational risks, among other factors.

Technology companies and contractors pay an average of $198 per month, or $2,375 per year, for commercial auto insurance. This policy can pay for property damage and medical bills in an accident involving a vehicle owned by your internet security company. It can also cover vehicle theft, vandalism, and weather damage.

Most states require this type of insurance for vehicles owned by a business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial car insurance depends on several factors, including the policy limits you choose, coverage options, the value of your vehicle, and the driving records of anyone permitted to drive.