How Much is Cyber Insurance for Startups?

Starting a new business is exciting. It’s also just a little terrifying. You’re balancing tight budgets, chasing growth, and wearing more hats than you thought humanly possible. So when someone brings up “cyber insurance,” your first thought might be: Do we really need that right now?

Then your second thought is probably: How much is this going to cost me?

If that’s where you’re at, you’re not alone. Most startups don’t start with a dedicated cybersecurity team or even a clear IT strategy. But cyber threats don’t wait for you to grow up as a company. And when they hit, they hit hard, especially if you’re not insured.

Let’s walk through what cyber insurance really costs, what it covers, and how you can protect your startup without draining your budget.

So, What Is Cyber Insurance Anyway?

Think of cyber insurance like a safety net for your digital life. If your systems are hacked, your data is breached, or your operations are taken offline by a cyberattack, this type of insurance helps cover the fallout, things like legal fees, notification costs, data recovery, and even the cost of downtime.

It’s not a luxury for large companies anymore. It’s quickly becoming essential for startups, especially those handling customer data, online payments, or even just email communication (which is where a lot of attacks start).

Okay, But How Much Does It Cost?

On average, cyber insurance for startups costs between $750 and $2,500 per year for basic coverage. That’s based on a small business with low to moderate risk, think 1 to 50 employees, handling sensitive but not mission-critical data, and operating without any major compliance requirements.

The actual cost depends on a few big factors:

1. Your industry. Healthcare and finance? You’re going to pay more. A boutique bakery selling online? Less.

2. The size of your team. More employees = more endpoints = more risk.

3. Your existing cybersecurity posture. If you’ve already got strong protections in place, insurers see you as a safer bet, and that can lower your premium.

4. Your coverage limits and deductibles. Like any insurance, more coverage costs more.

But here’s the kicker: some insurers won’t even offer a policy unless you’ve done the basics—like multi-factor authentication, regular software updates, and staff training. That’s where having a partner like DaZZee comes in.

Why Your Cybersecurity Posture Impacts Your Premium

Insurance companies aren’t just looking at your risk, they’re looking at how well you’re reducing that risk.

If your startup is running on outdated systems with no firewall and everyone uses “Password123,” you’ll either pay a fortune or get denied altogether. But if you’ve got strong, documented cybersecurity practices in place, you’re not just protecting your data, you’re protecting your bottom line.

That’s where DaZZee’s Fortify IT service can make a huge difference. It’s built specifically for small businesses and startups who need advanced cybersecurity without hiring a full internal team. From 24/7 threat monitoring to dark web alerts and Microsoft 365 security audits, Fortify IT helps you check every box your insurer wants to see, and then some.

So, Is Cyber Insurance Worth It for Startups?

Absolutely. One ransomware attack or email scam can cost tens of thousands of dollars, or more. Cyber insurance helps cover the damage, but it’s even more powerful when paired with proactive cybersecurity.

Don’t think of it as an expense. Think of it as part of your startup’s survival kit, right next to your pitch deck and coffee subscription.

Not Sure If You’re Insurable? Let’s Find Out.

Before you shop for cyber insurance, make sure your business actually qualifies, and that you’re not overpaying for risk you can reduce. DaZZee’s Fortify IT service helps startups like yours meet insurer requirements, close security gaps, and confidently apply for coverage.

Book a quick call and we’ll walk you through what insurers look for, and how to get ahead of it without hiring an internal IT team. Start the conversation today.