Cyber Insurance Calculator
Is cyber insurance worth it?
Calculate cyber insurance expected value against breach risk. Enter premium and breach probability for an instant result.
What this tool does
This tool calculates expected value of cyber insurance given breach probability and coverage.
Enter Values
Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Cyber insurance premiums for small businesses run 500-5,000 annually depending on revenue and data handled. Typical breach costs 5,000-500,000. This calculator shows expected value of insurance given breach probability.
2,000 premium with 5% annual breach probability × 100,000 avg cost: expected payout 5,000, net expected value 3,000. Strong positive for businesses that handle customer data.
Cyber insurance often requires security controls (MFA, encryption, backups) for coverage. The premium reflects your security posture - poor controls mean high premium or denied coverage.
Quick example
With annual premium of 2,000 and breach probability of 5% (plus average breach cost of 100,000 and policy coverage of 80,000), the result is 2,000.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.
Which inputs matter most
You enter Annual Premium, Breach Probability %, Average Breach Cost, and Policy Coverage. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.
What's happening under the hood
Expected payout = probability × coverage. Net value = expected payout - premium. Coverage capped at breach cost. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.
What the score tells you
Headline financial numbers — income, savings, debt — each tell part of the story. This calculation stitches several together into a single read you can track over time. The value is in the direction, not the absolute number.
What this doesn't capture
The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.
£2,000 £ vs 5% × £100,000 £ breach = $2,000.00.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Expected payout = probability × coverage. Net value = expected payout - premium. Coverage capped at breach cost.
References
Frequently Asked Questions
Is cyber insurance always worthwhile?
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