How to save money on your cyber insurance?

With online threats becoming a bigger problem for businesses of all sizes, cyber insurance is there to offer valuable financial protection. Here are six ways to save money on your cyber cover.

How to save money on cyber insurance

1. Choose the right level of cover

Like with most insurance products you can often set the cover limit when you choose your cyber insurance policy.

The , the more you’ll pay for your policy, so it pays to get the right level of cover for your business.

To help you work out how much cover you need, consider using a risk assessment tools, like the Hiscox Cyber Exposure Calculator.

This should give you a better idea of how much cover your business needs and help you avoid paying extra for cover you don’t need.

You can find out more about the types of cover cyber insurance can offer by reading our guide: What does cyber insurance cover.

2. Choose the right way to pay

How you choose to pay for your cyber insurance policy can have a significant bearing on the overall cost and your business cashflow.

  • If you’ve got plenty of funds available, paying upfront is almost always the cheapest option when you’re taking out any insurance policy.
  • If you’re cashflow is under pressure: spreading the cost by paying for your cover monthly could be a better option.

Many insurers charge interest if you choose to pay monthly or by Direct Debit, so always check for this and if you need to spread the cost look for an interest free option.

This interest charge can often be well over 20% per year, so paying for your policy in full or finding a 0% interest option could give you a big saving.

3. Check for extra discounts

Some cyber insurers offer extra discounts when you get a quote if you fulfil certain criteria, for example:

  • If you already hold another insurance policy with them
  • If you take out your cyber insurance alongside a broader business insurance policy

It’s always worth double checking whether there are any discounts like these available that your business could take advantage of.

4. Become cyber essentials accredited

The National Cyber Security Centre offer a series of training courses with the aim of improving your cyber security.

They cover the most common cyber security threats and a series of steps your business can take to improve your security measures.

They offer two courses:

  • Cyber essentials certificate: £300 +VAT
  • Cyber essentials plus: £POA

Several insurers offer a discount on your cyber cover if you can show your business has completed and passed one of these courses.

While this discount may not always equal the cost of the course, if they help your business avoid a cyber-attack then they’ll have been more than worth the pay-out.

5. Carry out a thorough risk assessment

Many insurers will require your business to conduct a risk assessment before they will offer you cover – you’ll also need to maintain a minimum-security standard to keep your policy valid.

Most cyber insurance policies will exclude cover where there has been clear negligence senior staff so ensuring your protection measures are comprehensive makes good sense.

Some insurers also offer money off if you take extra precautions to reduce the risk of a cyber-attack.

This can either be through partnering with the insurers themselves to follow their risk assessment procedures or through carrying out your own independent risk assessment.

You can also contract IT security specialists to help with your assessment to ensure it is robust and up to date.

Remember, if your risk assessment can prevent a successful attack it will save your business money regardless of whether you have cyber cover in place. Even with cyber cover in place, the cost of an attack nearly always outweighs the cost of insurance, especially when you consider the wider disruption and stress caused to your staff and business as a whole.

You can find out more on how to conduct a thorough risk assessment on the National Cyber Security Centre website.

6. Shop around

Perhaps the most important tip is to shop around and compare cyber insurance quotes from several different insurers before you buy. Bottom of Form

Every insurer will offer different levels of protection in different areas, some may specialise in affordable first party cover for example.

Others might partner with different underwriters to offer more comprehensive third-party policy options that might make the cover more costly.

You’ll need to have a clear understanding of what you need your cyber insurance policy to cover and make sure you:

  • Compare like for like quotes: so that you can find the cost for the same level of protection from each insurer. It’s always best to decide what protection you need first and then look around for the cheapest price, rather than the other way around.
  • Set the same excess level: wherever possible. A higher excess will lower your annual insurance premium but make it more expensive to make a claim, so decide on what level you’re happy with before you start

You can choose to get quotes from insurers directly, or alternatively speak to a specialist broker to help you compare your options.

Pay for the right cover

While these tips could help your save money on cyber cover, it’s important to get the right protection for your business even if you have to pay a little extra.

Not all policies offer the same level of protection, and if you store customer data, financial records or have any other sensitive business information then comprehensive cyber cover becomes even more crucial.

To find out more about what your policy should include read our guide: What does cyber insurance cover, and for more on the likely costs of getting the right cover in place read our guide: How much does cyber insurance cost.

Cyber Insurance FAQs

This depends on your business needs, if you have limited cashflow you may find it useful to spread the cost, but you may also have to pay interest making your cover more expensive.

You will need to check with each insurer, but most do not offer a no claims discount. No claims discounts are more widely available with personal insurance policies, for example car insurance, than they are with cyber cover.

While increasing your excess can make your insurance premium lower you need to be confident that you can afford to pay it should you need to make a claim.

If your excess is too high, it puts you off claiming then there is less benefit to being covered.

Yes, business insurance policies, including cyber, fall under allowable expenses, if you can clearly demonstrate that the policy is solely for business purposes.

Occasionally insurers will offer a discount if you already have an insurance policy with them, so this is worth checking.

Some also offer to beat rival quotes from different insurers, so it is best to shop around and then use the cheapest quote to see if you can reduce the price further elsewhere.

Martin Lane
Written by Martin Lane, Head of Content
Martin is an experienced writer in the financial services sector previously serving as Managing Editor at money.co.uk with regular guest slots on BBC Radio 4 and featured in the national press.

Cyber insurance buying guide for SME’s

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