How we build the estimates

The shape of the model

Each calculator starts with a base rate expressed per million dollars of revenue, or for directors and officers cover, per funding stage. That base is multiplied by an industry factor, then adjusted by exposure loads for headcount, data volume, contract size or claims history. Finally a limit factor is applied, and fees and taxes are added.

Rate per million falls as revenue rises. This reflects how insurance is actually bought: a 2 million dollar company and a 100 million dollar company may both buy a 1 million limit, so the larger company pays much less per unit of revenue.

Standing assumptions

• United States domiciled buyer with no operations in sanctioned territories.
• Cyber estimates assume a full first party and third party form, including ransomware and business interruption with a waiting period of 8 to 12 hours.
• Technology errors and omissions estimates assume a combined form with cyber, which is how most carriers write the class.
• Directors and officers estimates assume a private company management liability form with Side A, B and C cover and no planned public offering.
• Retentions scale with revenue: 5,000 dollars below 5 million, 25,000 dollars to 25 million, 50,000 dollars above that.

Why the ranges are wide

Insurance is priced by people, not only by formulas. Two identical companies can be quoted 40 percent apart depending on carrier appetite, submission quality and the broker who handles the placement. We publish that spread rather than pretend to a precision the market does not have. Our ranges are set so that roughly four out of five real quotes should fall inside them.

Data sources and refresh cycle

• Published market commentary and rate movement reports from major brokers.
• Public rate filings where insurers file admitted programmes.
• Anonymised quote and binder figures shared with us by buyers.
• Regulatory penalty and breach cost data used to sense check severity loads.

The rate curves are reviewed every quarter. When a curve changes materially, we note the date and the direction of the change here.

Corrections

If you can show us a real quote that sits well outside our range, we want to see it. We correct in public and note the change rather than editing quietly.

Independence policy

We do not broker insurance. We do not operate a quote marketplace. We do not accept broker or carrier sponsorships, we do not sell leads, and we do not take referral fees or commissions from anyone in the insurance distribution chain. We do not collect your calculator inputs and we never pass contact details to a third party.

The site is funded entirely by display advertising served through Google AdSense. Advertisers have no visibility of or influence over our estimates, our rate curves or our editorial. Ad units are labelled where they appear.

Limits of this work

These are educational estimates, not quotes, and nothing here is legal, broking or financial advice. Only a licensed insurer can offer terms and only a policy document can tell you what is covered.