Cyber Insurance Small Business Cost 2026: $999/Year — and 72% Still Skip It

# Cyber Insurance Small Business Cost 2026: $999/Year — and 72% Still Skip It

> **Quick answer:** Cyber insurance for small businesses averages $999 per year (about $83/month) in 2026 for a $1 million policy. But 72% of small businesses carry no coverage — leaving an average $79,000 claim exposure unprotected. Premiums are rising 15-20% this year as ransomware incidents surged 126% in Q1 2025. Whether you buy, delay, or dismiss cyber insurance often comes down to how your brain processes invisible risk.

Cyber insurance for small businesses has never been more necessary — or more misunderstood. In 2026, ransomware attacks are up sharply, premiums are climbing after two years of decline, and the most common reason a claim gets denied has nothing to do with the attack itself. Yet the majority of small business owners still don't have a policy. Research shows that psychology, not cost, is often the deciding factor.

## What Cyber Insurance Actually Costs in 2026

The average small business pays **$999 per year ($83 per month)** for a $1 million aggregate cyber liability policy, according to MoneyGeek's 2026 analysis. But that number shifts significantly based on two factors: how many employees you have, and what industry you're in.

**By business size:** - Sole proprietor: approximately $540-620/year - 5-9 employees: roughly $850-1,100/year (a 45% jump from 1-4 employees — the threshold where insurers demand security infrastructure evidence) - 20-49 employees: up to $2,700/year — 325% more than a solo operator