As cyber threats continue to rise across Malaysia, more businesses are investing in cyber security insurance. But one of the first questions business owners ask is: “How much does cyber security insurance cost in Malaysia?”
The short answer? It depends.
The long answer involves understanding your business’s risk profile, industry, data sensitivity, and security practices — all of which influence pricing.
In this article, we break down what affects cyber security insurance premiums in Malaysia, provide example cost ranges, and explain how to evaluate whether your investment is worthwhile.
What Is cyber security insurance?
Cyber security insurance, also known as cyber security insurance, is a specialised policy designed to protect businesses against financial losses caused by cyberattacks, data breaches, ransomware, and other digital threats.
It can cover:
- Data breach response costs
- Ransomware payouts
- Business interruption losses
- Legal liabilities
- IT forensics and crisis communication
Key Factors That Influence cyber security insurance Cost in Malaysia
The price of cyber security insurance is not fixed. Insurers evaluate several factors when calculating your premium:
1. Size of Your Business
Larger companies often face higher premiums due to increased exposure. Factors include:
- Number of employees
- Revenue size
- Geographic presence
2. Industry Sector
Some industries are naturally more vulnerable to cyber threats, such as:
- Healthcare
- Financial services
- Technology & IT
- E-commerce
- Logistics
These industries often handle sensitive data and face stricter regulations, which increases their cyber risk profile — and therefore, insurance cost.
3. Volume and Sensitivity of Data
Do you store customer data, credit card numbers, or health records? The more sensitive and valuable your data, the higher your cyber liability.
4. Your Security Infrastructure
Insurance providers assess how well your business is protected:
- Do you use two-factor authentication?
- Is there regular employee training?
- Are systems backed up securely?
Strong cybersecurity measures can reduce your premium.
5. Claims History
Just like auto insurance, a business with previous cyber claims may face higher premiums or even limitations in coverage.
6. Coverage Limits and Deductibles
Higher policy limits and lower deductibles lead to higher premiums. Businesses must balance risk tolerance with budget.
See how cyber security insurance benefits Malaysian businesses
Sample cyber security insurance Cost Ranges (Malaysia)
While every business is different, here are some general estimates:
Business Type | Estimated Annual Premium | Typical Coverage Limit |
Micro Business (1–5 staff) | RM 800 – RM 2,000 | RM 100,000 – RM 250,000 |
SME (5–50 staff) | RM 2,500 – RM 6,000 | RM 500,000 – RM 1 million |
Mid-sized Enterprise (50–200 staff) | RM 7,000 – RM 20,000+ | RM 1 million – RM 5 million |
Large Corporation | RM 30,000+ | RM 5 million and above |
These are rough guidelines. Your actual premium will depend on your company’s risk assessment and insurer terms.
Looking for a personalised estimate? Contact Minaris for a quote
What Does the Premium Include?
Premiums are priced to cover a broad range of risks and services:
- Direct Costs: Breach response, ransomware payments, legal defence
- Indirect Costs: Business downtime, data restoration, reputation repair
- Support Services: 24/7 incident response, PR crisis team, forensic IT support
In many cases, the support you receive during a cyber event is just as valuable as the reimbursement itself.
Is cyber security insurance worth the cost?
Consider this:
- The average cost of a cyberattack on an SME in Southeast Asia is estimated to be over RM 300,000 (source).
- Data breach costs are rising year-on-year.
- Regulatory penalties under Malaysia’s Personal Data Protection Act (PDPA) can be substantial.
When you compare the cost of insurance (RM 2,000–RM 20,000 annually) with the potential damage from a breach, cyber security insurance offers a very strong return on protection.
How to Lower Your cyber security insurance Premium
Here are some proactive steps that may reduce your cost:
- Implement multi-factor authentication (MFA)
- Conduct employee awareness training
- Regularly back up data and systems
- Install endpoint protection and firewall solutions
- Develop an incident response plan
- Show proof of compliance with PDPA and IT security audits
Insurers often reward well-prepared businesses with lower premiums or better terms.
Cyber security insurance and Public Liability: Complementary Coverage
While cyber security insurance covers digital risks, public liability insurance covers physical risks like accidents and property damage.
Most businesses in Malaysia need both, especially those with online and physical operations.
Compare cyber security insurance vs public liability insurance
Final Thoughts
The cost of cyber security insurance in Malaysia is manageable — and in many cases, a fraction of what a data breach could cost you. Whether you’re a growing SME or a large corporation, investing in the right coverage protects your finances, reputation, and long-term stability.
Don’t wait until after a breach to evaluate your options.
Secure your business now — and stay protected.
Explore Cyber Security Insurance Solutions with Minaris
Request a Quote or Risk Assessment
Ready to Get Covered?
👉 Talk to an Expert at Minaris today.
Get protected with a plan that fits your business.
KH Chew is the Founder and Risk Advisor of Minaris, with over 30 years of experience in the insurance industry. He holds a Diploma in Insurance from the Malaysian Insurance Institute (MII), which laid the foundation for his in-depth expertise in property, financial lines, and other general insurance products. He is widely recognized for developing tailored insurance schemes for professionals and businesses across Malaysia. KH is also a passionate advocate for risk management and regularly advises clients and trade associations on comprehensive coverage strategies.