Average Cyber Insurance Cost (2026 Report)

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Cyber insurance with a $1 million aggregate annual limit averages $83 per month ($999 per year) for small businesses. The national benchmark draws from an analysis of business insurance costs across over 400 industries in all 50 states and Washington, D.C.

Keep in mind that this is only an estimate, and you quote is based on your industry, the type and amount of information you store, where you operate, and how many employees have access to your systems.

The cyber insurance cost estimate calculator below provides personalized pricing based on your industry, state and business size.

Most business insurance prices physical risk, but cyber insurance prices data risk. The more sensitive information you store, the more you pay. Three factors mainly drive your premium: industry (what data you hold), employee count (how many access points you create) and location (how much breaches cost to resolve in your state).

Use this table to find your size band and see how much you're paying above or below baseline. If you're between bands, budget for the higher one before you grow into it.

Unlike other coverage types, cyber insurance costs are more normally distributed across industries.

• Low-risk industries (20%+ below average): Cleaning services, transportation and logistics, recreation and sports, nonprofits and associations, agriculture and natural resources
• Mid-risk industries (within 20% of average): Wholesale and distribution, arts/media/entertainment, manufacturing, childcare services, education, construction and contracting, fitness services, pet care services, real estate and property services, repair and maintenance, beauty/body/wellness services, food and beverage, retail and product rental, marketing and communications, other professional services (event planners, lawyers, security guards)
• High-risk industries (20%+ above average): Consulting services, hospitality/travel/tourism, financial services, health care and medical, tech/IT

Tech companies, health care providers, and financial services firms pay 37% or more above average because their industries often involve high-value transactions and highly sensitive information. Even though these industries are especially expensive, most are not above average, and 68% are below national benchmarks.

Find your industry below to see where you fall, then review the risk tier to decide whether to prioritize security investments or shop harder for competitive rates.

If you want to explore business insurance costs in more detail for your industry, we've provided resources below.

Location matters less in cyber than in other business insurance, but it's still worth checking. The gap between the cheapest state Wyoming ($71) and most expensive area of Washington D.C. ($103) is only $32 a month because cyber-attack risk is not directly tied to your location.

Similar to industry, state risk is more normally distributed and cyber insurance pricing follows with an even more clear bell curve:

• Lower-cost states (10%+ below average): Idaho, Montana, North Dakota, Alaska, Wyoming.
• Mid-cost states (within 10% of average): Colorado, Texas, Florida, Georgia, North Carolina, Oregon, Pennsylvania, Michigan, Ohio, Minnesota, Arizona, Tennessee, Missouri, Wisconsin, Indiana, Alabama, South Carolina, Kentucky, Louisiana, Utah, Kansas, Oklahoma, New Mexico, Mississippi, New Mexico, Mississippi, Arkansas, Hawaii, Rhode Island, Maine, New Hampshire, Iowa, Vermont, Nebraska, West Virginia, South Dakota,
• Higher-cost states (10%+ above average): Washington D.C (District of Columbia), New York, California, New Jersey, Connecticut, Illinois, Maryland, Massachusetts, Delaware, Nevada, Virginia, Washington.

California and New York are the only states that sit 20% above the national average for cyber insurance costs, driven by stricter notification timelines, more aggressive attorneys and juries that award larger settlements. The vast majority of states stay close to the average, with 65% falling within 10% of national benchmarks.

California and New York carry higher premiums because breach response in those states is more expensive: stricter notification timelines, more aggressive attorneys general and juries that award larger settlements.

You can directly reduce your cyber insurance premium by improving your security. Missing basic controls like MFA or EDR can add 25% to 50% to your quote, or disqualify you from coverage entirely. Strong security lowers the risk profile and earns better rates. Required controls should be implemented first to qualify for coverage, then discount-earning controls added when the cost-benefit makes sense for the specific risk level.

Cyber insurance costs vary based on how insurers estimate your breach likelihood and potential claim size. Your premium is most influenced by industry, employee count and state. Use the $83 monthly national average as a reference point, not a prediction.

To get the most out of this data, think through three questions: 

• Where do you fall compared to the average, given your industry, state and employee count?
• What's driving your cost, whether that's data sensitivity or your security posture?
• What would actually change your price, like adding MFA, EDR or backup procedures, or shopping multiple insurers?

Unlike other forms of business insurance, you have direct control over cyber insurancepremiums through security investments. Strong controls can cut your quote by 20% to 30% or make the difference between approval and denial.