With over 422 million records exposed globally in the third quarter of 2024, cyber threats are growing more sophisticated. Also, the global average cost of a data breach in 2024 increased by 10% and hit the highest total ever — $4.88 million. All of this leads to increased pressure on companies, especially managed service providers (MSPs), to protect both their operations and their clients’ data.
Holding a cyber insurance policy can help avoid breaches, ransomware attacks, and other digital threats. Explore the top cyber insurance companies you can trust as an MSP in 2025, and choose the right coverage for your business.
What is cyber insurance?
Cyber insurance is a specialized policy designed to protect businesses from financial losses resulting from cyberattacks, data breaches, and other online threats. It typically covers costs related to incident response, legal fees, regulatory fines, data recovery, and even ransom payments. This type of insurance is essential as it helps safeguard against liabilities tied to managing sensitive client data and IT systems.
Why is it necessary to have cyber insurance?
For managed service providers, the stakes are higher when it comes to cybersecurity. Managing multiple clients’ IT infrastructures increases exposure to cyber risks. A single breach can lead to significant financial losses, reputational damage, and even legal repercussions.
Cyber insurance helps offset these risks, ensuring that your business can recover from unexpected attacks without bearing the full financial burden. Plus, many clients now expect their MSP partners to carry cyber insurance as part of their own security protocols.
What MSPs need to consider when choosing a policy
When choosing an MSP cyber insurance policy, evaluate options that meet both operational and regulatory needs. Consider these key points:
- Comprehensive coverage: Look for protection against data breaches, ransomware, business interruptions, and third-party liabilities.
- Clear exclusions: Understand policy limitations, waiting periods, and deductibles to avoid unexpected gaps.
- Adequate limits: Ensure coverage limits are sufficient to handle potential losses and liabilities.
- Cost-effectiveness: Compare premiums relative to benefits, and explore bundling options to save costs.
- Insurer reputation: Select providers with strong claims handling, proven expertise, and positive market reviews.
- Cybersecurity alignment: Check that underwriting rewards robust security measures like MFA, regular audits, and proactive risk management.
- Regulatory compliance: Confirm the policy meets industry standards and contractual obligations with clients.
Best cyber insurance companies for MSPs at a glance
- Chubb: Best for comprehensive global coverage with tailored solutions for businesses of all sizes
- AXA XL: Best for customizable policies addressing industry-specific cyber risks
- Beazley: Best for integrated risk management and specialized incident response services
- AIG: Best for high coverage limits and extensive support in data restoration and system repairs
- The Hartford: Best for tailored coverage options suitable for small to mid-sized businesses
- Hiscox: Best for specialized coverage designed specifically for small businesses
- FifthWall Solutions: Best for partnering with MSPs to provide customized cyber insurance solutions
| Provider | Ideal for | Coverage options | Target market | Notable feature |
|---|---|---|---|---|
| Chubb | Comprehensive global coverage | Data restoration, system repairs, forensic investigations, ransom reimbursement | Businesses of all sizes | High coverage limits, up to $100 million |
| AXA XL | Customizable policies for industry-specific risks | Data restoration, system repairs, forensic investigations, ransom reimbursement | Mid to large enterprises | Tailored solutions for various industries |
| Beazley | Integrated risk management and incident response | Data breach response, cyber liability, eCrime coverage | Small to large businesses | Specialized incident response services |
| AIG | High coverage limits and extensive support | Data restoration, system repairs, forensic investigations, ransom reimbursement | Large enterprises | High coverage limits, up to $100 million |
| The Hartford | Tailored coverage for small to mid-sized businesses | Data breach insurance, cyber liability insurance | Small to mid-sized businesses | Established reputation with over 200 years in the insurance industry |
| Hiscox | Specialized coverage for small businesses | Data breach response, cyber extortion protection, business interruption, data recovery | Small businesses | Specialized coverage designed specifically for small businesses |
| FifthWall Solutions | Partnering with MSPs for customized solutions | Policy review, gap analysis, cyber insurance placement | Managed service providers (MSPs) | Streamlined application process with the LOTA intake form |
Chubb cyber insurance
Chubb is a leading provider of cyber insurance solutions, offering tailored coverage to protect businesses against evolving digital threats.
Chubb’s coverage options include:
- Data breach response: Assistance with managing and mitigating data breaches, including notification and credit monitoring services
- Network security liability: Protection against claims arising from security failures, such as malware infections or denial-of-service attacks
- Privacy liability: Coverage for liabilities related to the unauthorized disclosure of personal or confidential information
- Business interruption: Compensation for income loss due to cyber incidents disrupting business operations
- Cyber extortion: Coverage for costs associated with ransomware attacks and other forms of cyber extortion
- Technology errors and omissions: Protection against financial losses due to errors or failures in technology products or services.
Pros and cons
| Pros | Cons |
|---|---|
| ✅ Long-standing expertise in cyber risk solutions ✅ No minimum premiums ✅ 24/7 incident response support via Cyber Alert® app | ❎ Premiums may be higher compared to other insurers ❎ Specific coverage details may require consultation with an agent |
Pricing
Premiums are tailored to the size and risk profile of the business, ensuring flexibility for organizations of all sizes. If you are looking for specialized incident response services, you may want to explore Beazley.
AXA XL cyber liability insurance
AXA XL is a prominent cyber insurance provider, offering customizable solutions to help businesses manage and mitigate cyber risks. Its CyberRiskConnect policy is designed to address the evolving landscape of cyber threats, providing comprehensive protection tailored to various industries.
Top coverage options include:
- Privacy and security liability: Protection against claims arising from data breaches and security failures
- Data breach response and crisis management: Support for managing data breaches, including notification and crisis management services
- Business interruption and extra expense: Coverage for income loss and additional expenses due to cyber incidents disrupting operations
- Cyber extortion and ransomware: Financial protection against costs associated with cyber extortion demands
- Technology products and services liability: Coverage for liabilities related to technology products and services
- Media liability: Protection against risks associated with media content and publications
Pros and cons
| Pros | Cons |
|---|---|
| ✅ Customizable policies tailored to industry-specific risks ✅ Access to proactive risk mitigation resources ✅ Dedicated support before, during, and after a cyber incident | ❎ Specific coverage details may require consultation with an agent ❎ Premiums may vary based on customization and risk profile |
Pricing
Premiums are determined based on factors such as industry, company size, and selected coverage options. For value high coverage limits and extensive support, AIG might be a better alternative.
Beazley cyber insurance
Beazley is a leading specialist insurer with over two decades of experience in cyber risk management. Its Full Spectrum Cyber solution integrates risk management, underwriting, claims handling, and advanced security expertise to offer comprehensive protection against cyber threats.
Top coverage options from Beazley include:
- Breach response: Immediate assistance with incident response, including forensic investigations and public relations support
- First-party coverage: Financial protection against direct costs from cyber incidents, such as data restoration and business interruption losses
- Third-party coverage: Liability protection for claims arising from data breaches affecting clients or partners
- eCrime coverage: Protection against electronic crimes, including funds transfer fraud and phishing attacks
Pros and cons
| Pros | Cons |
|---|---|
| ✅ 20+ years’ of experience in cyber risk management ✅ Comprehensive, integrated approach to cyber insurance ✅ Access to specialized incident response services | ❎ Premiums may be higher for small and mid-sized businesses with limited budgets ❎ Coverage limitations can impact certain situations ❎ Deductibles may pose challenges in covering expenses related to cyber incidents |
Pricing
Beazley’s premiums are customized based on factors such as industry, company size, and specific risk exposures. If a more tailored solution for small to mid-sized businesses appeals to you, The Hartford could be worth a look.
AIG cyber insurance
AIG is a prominent global insurer offering comprehensive cyber insurance solutions through its CyberEdge® product. Designed to help businesses assess and mitigate cyber risks, CyberEdge® provides extensive coverage options, including:
- Data restoration and recovery: Assistance with restoring and recovering data compromised during a cyber incident
- System repairs: Coverage for repairing damaged computer systems following a cyberattack
- Forensic investigations: Funding for investigations to determine the cause and extent of a cyber breach
- Ransom reimbursement: Reimbursement for ransom payments made in response to cyber extortion events
Pros and cons
| Pros | Cons |
|---|---|
| ✅ High coverage limits, up to $100 million ✅ Comprehensive coverage including data restoration, system repairs, and forensic investigations | ❎ Premiums may be higher compared to other insurers ❎ Specific coverage details may require consultation with an agent |
Pricing
AIG’s cyber insurance premiums are customized based on factors such as industry, company size, and specific risk exposures. Should your focus shift toward specialized coverage designed for small businesses, Hiscox may better align with your needs.
The Hartford cyber insurance
The Hartford is a well-established insurance provider offering tailored cyber insurance solutions to help businesses manage and mitigate cyber risks. Its policies are designed to protect against data breaches, cyberattacks, and other technology-related threats.
Coverage options include:
- Data breach insurance: Helps businesses respond quickly to data breaches by covering notification costs, public relations efforts, and credit monitoring services for affected individuals
- Cyber liability insurance: Helps protect against financial losses due to cyberattacks, including legal services, notification expenses, extortion payments, lost income from network outages, and regulatory fines
Pros and cons
| Pros | Cons |
|---|---|
| ✅ Tailored coverage options for businesses of varying sizes ✅ Access to The Hartford Cyber Center for resources and tools ✅ Established reputation with over 200 years in the insurance industry | ❎ Specific coverage details may require consultation with an agent ❎ Premiums may vary based on customization and risk profile |
Pricing
The Hartford customizes cyber insurance premiums based on factors such as the number of customers, type of sensitive data stored, revenue, and claims history. If partnering with an insurer that works closely with MSPs for customized placement interests you, consider FifthWall Solutions.
Hiscox cybersecurity insurance
Hiscox is a renowned insurance provider specializing in tailored cybersecurity insurance solutions for small businesses. Its policies are designed to protect against data breaches, cyberattacks, and other technology-related risks, offering comprehensive coverage, including:
- Data breach response: Assistance with managing data breaches, including notification costs, public relations efforts, and credit monitoring services for affected individuals
- Cyber extortion protection: Coverage for expenses related to ransomware attacks and other forms of cyber extortion
- Business interruption: Compensation for income loss and additional expenses due to cyber incidents disrupting business operations
- Data recovery: Financial assistance for restoring and recovering data compromised during a cyber incident.
Pros and cons
| Pros | Cons |
|---|---|
| ✅ Specialized coverage tailored for small businesses ✅ Access to Upfort Shield, a comprehensive cybersecurity platform ✅ Established reputation with a focus on niche insurance markets | ❎ Premiums may be higher compared to other insurers ❎ Specific coverage details may require consultation with an agent |
Pricing
Hiscox customizes cyber insurance premiums based on factors such as industry, company size, and specific risk exposures. Since it offers specialized coverage options and access to advanced cybersecurity resources, premiums may be higher compared to other insurers. If comprehensive global coverage is a priority, you might want to explore Chubb.
FifthWall Solutions cyber insurance
FifthWall Solutions is a specialized cyber insurance distributor that partners with MSPs to enhance client security through tailored cyber insurance solutions. Its approach integrates cybersecurity expertise with insurance placement, aiming to streamline the insurance process for MSPs and their clients.
Top benefits include:
- Policy review: Assessment of clients’ existing insurance policies to identify coverage gaps and recommend comprehensive solutions
- Gap analysis: Evaluation of clients’ current security controls against carrier requirements, providing a roadmap for achieving cyber insurance readiness
- Cyber insurance placement: Access to a broad market of over 40 carriers to secure optimal coverage terms and pricing for clients
Pros and cons
| Pros | Cons |
|---|---|
| ✅ Specialized focus on MSPs and their clients ✅ Streamlined application process with the LOTA intake form ✅ Enhances MSPs’ value proposition by aligning cybersecurity with insurance | ❎ Limited to cyber insurance offerings ❎ May require MSPs to adjust workflows to integrate partnership |
Pricing
FifthWall Solutions collaborates with MSPs to offer customized cyber insurance solutions for their clients. Pricing is determined based on factors such as the client’s industry, size, risk profile, and existing security measures. For highly customizable, industry-specific policies, AXA XL could be an ideal option.
How to choose the best cyber insurance vendor
Selecting the right vendor begins with assessing your business’s unique cyber risks and requirements.
- Start by comparing the scope of coverage — ensure the policy addresses data breaches, business interruption, cyber extortion, and technology errors.
- Evaluate pricing structures and ensure premiums align with your risk profile and industry standards.
- Investigate the vendor’s reputation by reviewing customer feedback, claims handling performance, and market expertise.
- Consider the quality of support services, such as 24/7 incident response and proactive risk management tools.
- Examine underwriting criteria to ensure they complement your current cybersecurity measures, and verify that the policy meets regulatory and contractual obligations.
Bottomline: Cyber insurance is quickly becoming a necessity for MSPs
Cyber insurance is rapidly becoming a necessity for MSPs. With cyber threats growing in sophistication and frequency, MSPs — responsible for managing sensitive client data and critical IT systems — face ever-increasing risk.
A robust cyber insurance policy not only mitigates financial losses from data breaches, ransomware, and business interruptions but also safeguards your business continuity and brand reputation.
As regulatory requirements tighten and client expectations rise, having dedicated cyber coverage enhances your credibility and positions your business as a secure, reliable partner.
Frequently Asked Questions (FAQs)
Who is the largest cyber insurance company?
AIG is widely recognized as one of the largest players in the cyber insurance market, alongside other global leaders like Chubb.
Is it worth having cyber insurance?
Absolutely. Cyber insurance covers data breaches, business interruptions, legal fees, and more, making it essential for safeguarding against increasingly sophisticated cyberattacks.
How much does business cyber insurance cost?
For small to mid-sized businesses, annual premiums typically range from $1,000 to $7,500, with many paying around $1,500 to $2,000 per year for approximately $1 million in coverage.