Study Reveals Most Expensive State for Cyber Insurance
In the United States, business cyber insurance costs $1,501 per year on average, which comes down to $125 per month, according to a new study by AdvisorSmith, which shows that state averages differ significantly. The study is based on data gathered between January and September of this year. The cheapest state to purchase cyber insurance is Arizona, where the average yearly cyber insurance rate is $1,139. At the other end of the spectrum is Delaware, where annual premiums average $1,626.92. The premiums are calculated for liability limits of $1 million for firms with moderate risk and $1 million in company revenue. Across the US, this type of insurance can be purchased for between $544 and $2,642 per year.
Adrian Mak of AdvisorSmith said that “premium increases in the cyber market are tracking at 5% or less, which is relatively stable for an insurance product.” According to him, cyber insurance firms are increasingly focusing on “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.”