Study Reveals Most Expensive State for Cyber Insurance
Purchasing cyber insurance to protect your business from the ever-increasing number of threats will cost you more in Delaware than in any other US state.
A new study by business insurer AdvisorSmith has found that the average cost of annual cyber insurance in the Blue Hen State is 8.34% higher than the national average and a staggering 32.49% higher than its cost in the cheapest state for cyber insurance, Arizona.
Across America’s 50 states and the District of Columbia, the cost of cyber insurance averaged out at $1,501 per year, or around $125 a month, but for Delaware business owners the price rose to $1,626.92 per year. In Arizona, where the cost of cyber insurance was 24.15% cheaper than the national average, policies were on average $1,139 per year.
The study was conducted using quote estimates gathered in August and September 2019, as well as rate filings supplied by over 50 insurance companies throughout America between January 2019 and September 2019.
Premiums nationwide ranged from as low as $544 to as high as $2,642 for comparable insurance coverage, based upon companies with moderate risks. The premiums were based upon liability limits of $1m, with a $10,000 deductible and $1m in company revenue.
North Carolina was the second most expensive state for cyber insurance, with an average annual cost of $1,611. At the other end of the scale, after Arizona, Michigan and Minnesota offered the cheapest cyber insurance.
Asked how the average cost of cyber insurance has changed since last year, AdvisorSmith’s Adrian Mak said: “Premium increases in the cyber market are tracking at 5% or less, which is relatively stable for an insurance product.”
The Marsh-Microsoft 2019 Global Cyber Risk Perception survey published yesterday found that only 17% of executives said they had spent more than a few days on cyber-risk over the past year. However, a little investment of time in their company’s cybersecurity could save them money.
Mak said: “We are seeing insurance companies focus more on operational cybersecurity defenses, where they are raising premiums on companies that don’t address cybersecurity vulnerabilities, while charging less to companies that are following the latest cybersecurity best practices.”
Describing how he expects the cyber insurance landscape to change going forward, Mak said: “The cyber insurance marketplace is expected to experience continued growth over the next decade. We expect more growth in the small and midsize business sector. Especially in small business policies, we are seeing cyber insurance bundled into package policies.”