Cyber Insurance Pricing Trends: What Small Businesses Paid in 2024

Cyber insurance pricing has been a rollercoaster over the past few years. After dramatic increases in 2021-2022, rates began stabilizing in 2023. Here’s what small businesses actually paid for cyber coverage in 2024.

The Big Picture: Market Stabilization

Good news: Double-digit premium increases are behind us for most businesses with good security practices.

Reality check: Businesses with weak security controls still face significant rate increases or coverage denials.

Pricing by Industry (Annual Premiums)

Healthcare & Medical

• Dentist: $800 - $2,500 (median: $1,400)
• Medical Clinic: $1,500 - $4,000 (median: $2,200)
• Veterinary: $600 - $2,000 (median: $1,100)

Higher due to HIPAA compliance requirements and PHI exposure

Professional Services

• CPA: $1,000 - $3,000 (median: $1,600)
• Law Firm: $1,200 - $4,500 (median: $2,100)
• Consulting: $800 - $2,800 (median: $1,500)

Varies significantly based on client data sensitivity

Retail & Restaurants

• Restaurant: $600 - $2,200 (median: $1,000)
• Retail Store: $800 - $2,800 (median: $1,300)
• Ecommerce: $1,200 - $4,000 (median: $2,000)

PCI compliance and transaction volume drive pricing

Technology & IT

• SaaS Startup: $2,000 - $8,000 (median: $3,500)
• IT Services: $1,800 - $6,000 (median: $2,800)
• Marketing Agency: $700 - $2,500 (median: $1,200)

Higher limits typically required, driving up premiums

What Drives Your Premium

🔒 Security Controls (Biggest Factor)

Premium Impact: 40-60% reduction for comprehensive controls

Must-haves:

• Multi-factor authentication on email/VPN
• Endpoint detection and response (EDR)
• Regular, tested backups
• Employee security training

💼 Industry & Data Type

Premium Impact: 2-5x difference between lowest and highest risk industries

High risk: Healthcare, financial services, legal Medium risk: Professional services, retail Low risk: Basic service businesses, manufacturing

💰 Coverage Limits & Deductibles

Typical combinations:

• $1M limit / $5K deductible: Base pricing
• $2M limit / $10K deductible: +60-80% premium
• $5M limit / $25K deductible: +150-200% premium

🏢 Business Revenue

Most carriers use revenue bands:

• Under $1M: Base rates
• $1-5M: +20-40% premium
• $5-10M: +50-80% premium
• Over $10M: Custom underwriting

📊 Claims History

• No prior claims: Standard rates
• One claim (3+ years ago): +10-20%
• Recent claim: +50-100% or non-renewal

Geographic Variations

Highest premiums: California, New York, Florida Lowest premiums: Rural Midwest, Mountain West Difference: Up to 30% between highest and lowest cost states

Note: Differences mostly reflect local claim frequency and regulatory environment

2025 Predictions

What’s Driving Rates Up

• AI-powered attacks increasing claim frequency
• Supply chain compromises creating larger losses
• Regulatory enforcement raising compliance costs

What’s Keeping Rates Stable

• Better security practices among insured businesses
• Improved carrier underwriting reducing bad risks
• Market competition as new carriers enter

Our Forecast

• Premium increases: 5-12% for well-controlled businesses
• Coverage availability: Improving for businesses with strong security
• New requirements: Expect additional controls around AI and cloud security

How to Get Better Rates

Before You Apply

1. Implement MFA on all critical systems
2. Deploy EDR on all endpoints
3. Test your backups regularly
4. Train employees on phishing recognition
5. Document everything for the application

During Shopping

1. Work with specialists who understand cyber insurance
2. Compare multiple quotes - pricing varies significantly
3. Consider higher deductibles to reduce premiums
4. Bundle with other coverage for potential discounts

After Purchase

1. Maintain your security program to avoid rate increases
2. Report improvements to your carrier
3. Review annually as your business evolves

The Bottom Line

Cyber insurance pricing is becoming more predictable, but security controls remain the biggest factor in what you’ll pay. Businesses that invest in proper cybersecurity can access competitive rates and comprehensive coverage.

The “spray and pray” approach to cyber insurance - applying without proper security controls - is dead. In 2025, carriers want partners, not just premium payers.

Ready to shop for coverage? Use our state and industry guides to understand what carriers look for in your specific situation.

Need help with security requirements? Our MFA implementation guide covers the most critical control for getting coverage.