Skip to content
ENExplore Calculators

Cyber Insurance Coverage Calculator

Test whether a cyber policy covers the modelled loss: limits, sub-limits, retention, waiting period and uninsured residual.

About Cyber Insurance Coverage Calculator

The headline limit is rarely what determines recovery. Business interruption sub-limits, a waiting period that excludes the first several hours, and the retention all reduce the claimable amount before the limit is ever reached — which is how a ten-million policy responds to a twelve-million loss with far less than ten. Control warranties are modelled explicitly because failing one is the most common cause of a reduced or denied claim. The number that matters is the uninsured residual, because that is what the business actually absorbs — and it is usually much larger than the gap between the loss and the limit.

Formula

Cyber Insurance Coverage

recoverable = min(policyLimit, max(0, claimable − retention)), where claimable applies the business interruption sub-limit and removes the loss falling inside the waiting period.

claimable
Loss that falls within cover after sub-limits
retention
Deductible borne before the policy responds
waitingPeriod
Initial outage hours excluded from business interruption cover
warrantyFactor
Halves modelled recovery where warranted controls are not in place

Worked example

With the default values below, Cyber Insurance Coverage Calculator returns Uninsured Residual Loss of $2,000,000. Change any input above and every figure here is recalculated in your browser.

Inputs used

Modelled worst-case lossaccepts 0–100,000,000,000 currency
12,000,000 currency
Aggregate policy limitaccepts 0–100,000,000,000 currency
10,000,000 currency
Retention or deductibleaccepts 0–1,000,000,000 currency
250,000 currency
Business interruption sub-limitaccepts 0–100,000,000,000 currency
5,000,000 currency
Business interruption portion of the lossaccepts 0–100,000,000,000 currency
6,500,000 currency
Business interruption waiting periodaccepts 0–720 hours
12 hours
Expected outage lengthaccepts 0–8,760 hours
72 hours
Loss per hour of outageaccepts 0–100,000,000 currency/hour
45,000 currency/hour
Annual premiumaccepts 0–1,000,000,000 currency
380,000 currency
Warranted controls fully in place
Yes

Results

Uninsured Residual Loss
$2,000,000
Expected Recovery
$10,000,000
Loss Inside the Waiting Period
$540,000
Business Interruption Shortfall
$960,000
Coverage Ratio
83.3%
Premium as Share of Limit
3.80%
Adequacy Verdict
Partial — a material uninsured residual remains, usually from sub-limits

Step by step

  1. 1Values used
  2. 2Cyber Insurance Coverage
  3. 3Uninsured Residual Loss= 2,000,000
  4. 4Expected Recovery= 10,000,000
  5. 5Loss Inside the Waiting Period= 540,000
  6. 6Business Interruption Shortfall= 960,000
  7. 7Coverage Ratio= 83.3
  8. 8Premium as Share of Limit= 3.80

Assumptions and limits

  • The result is derived only from the 10 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or fees or charges into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Cyber Insurance Coverage calculated?

recoverable = min(policyLimit, max(0, claimable − retention)), where claimable applies the business interruption sub-limit and removes the loss falling inside the waiting period. The headline limit is rarely what determines recovery. Business interruption sub-limits, a waiting period that excludes the first several hours, and the retention all reduce the claimable amount before the limit is ever reached — which is how a ten-million policy responds to a twelve-million loss with far less than ten. Control warranties are modelled explicitly because failing one is the most common cause of a reduced or denied claim.

Why does Cyber Insurance Coverage matter?

The number that matters is the uninsured residual, because that is what the business actually absorbs — and it is usually much larger than the gap between the loss and the limit.

What values do I need to enter?

This calculator takes 10 inputs: Modelled worst-case loss, Aggregate policy limit, Retention or deductible, Business interruption sub-limit, Business interruption portion of the loss, Business interruption waiting period, Expected outage length, Loss per hour of outage, Annual premium, Warranted controls fully in place. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

Why does the waiting period matter so much?

Because it excludes the most expensive hours. A 12-hour waiting period against a 72-hour outage removes a sixth of the interruption loss from cover before any sub-limit applies, and it is one of the cheapest terms to negotiate down.

What happens if a warranted control is not in place?

It depends on the wording, but the insurer may reduce or decline the claim on the basis of a misrepresentation in the application. The model halves the expected recovery to keep that risk visible; in practice the range runs from a modest reduction to nothing at all.

Related Calculators

Cyber Insurance Coverage Calculator | Calcrivo