Cyber Insurance Coverage Limits and Deductibles Explained

Typical Limits

According to Insureon, small businesses typically carry cyber liability coverage limits between $1 million and $5 million. The right limit for your business depends on how much data you hold, how large a single incident could realistically become, and what your contracts with vendors or clients may require.

Typical Deductibles

Average deductibles for small businesses fall between $1,000 and $2,500. A higher deductible generally lowers your premium, since you’re absorbing more of a smaller loss yourself, while a lower deductible raises your premium but reduces your out-of-pocket cost if something happens.

How to Think About the Tradeoff

A lower deductible makes sense if a sudden $5,000 to $10,000 expense would meaningfully strain your business. A higher deductible can make sense if you’re comfortable absorbing a smaller incident yourself in exchange for a lower annual cost, and you’re more concerned about protection against a catastrophic claim.

Limits Aren’t One-Size-Fits-All

A $1 million limit might be plenty for a small retail shop, but could be thin for a healthcare practice or law firm handling thousands of sensitive records. Our agents walk through your actual exposure, not just a revenue number, when recommending a limit. Start with a free quote to see what limit fits your business.