CHICAGO, IL (June 9, 2026) – Cyber insurance adoption among small businesses is surging, according to new data from Insureon, the leading digital agency for small business insurance and part of HUB International, the fifth-largest global insurance and employee benefits broker.
From 2023 to 2025, cyber insurance adoption among Insureon customers grew 50%. Over the same period, total policies bound, meaning completed purchases, increased 59%.
Applications for cyber insurance grew more modestly over the past two years, up 8.8%, suggesting more businesses already considering coverage are choosing to move forward and buy it. Early 2026 data shows this trend continuing, with both applications and purchases up year over year and on pace for continued growth.
“Small businesses rely on more digital tools than ever before, but many don’t fully recognize the risk that comes with them,” said Jeff Kroeger, president of Insureon. “Cyber protection is no longer just for tech companies. It’s becoming a standard part of running a business.”
Cyber insurance adoption is expanding across a wide range of industries, not just in technology. Insureon saw the fastest growth among:
These industries rely heavily on digital payments, customer data and online systems such as software platforms, cloud services and IT support tools, which can expose them to cyber incidents like fraud or data breaches.
Insureon’s data also shows a shift in how small businesses are buying cyber coverage. The share of customers purchasing cyber insurance alongside other policies increased from 68% in 2023 to 81% in 2025. These policies often include general liability insurance, which covers claims like customer injuries or property damage, and professional liability insurance, which covers mistakes or negligence.
By 2025, the most common bundle included all three types of coverage, reflecting how cyber incidents can overlap with other business risks.
“Cyber incidents don’t happen in isolation,” Kroeger said. “What starts as a data issue can quickly turn into a liability claim, which is why more small businesses are choosing coverage that reflects how these risks actually play out.”
Industry data shows that many cyber incidents now stem from email fraud and social engineering, where attackers manipulate employees into sending money or sensitive information. This reflects how cyber risk is increasingly tied to everyday business activities, not just large-scale hacking.
The smallest businesses account for much of this growth. Sole proprietors and firms with fewer than five employees make up the majority of cyber insurance buyers, with sole proprietors seeing the fastest growth, up 89% from 2023 to 2025. Cyber adoption is rising quickly across several states, with the fastest growth in Georgia (+171%), Colorado (+122%) and North Carolina (+63%).
Despite increased demand, cyber insurance remains accessible for many small businesses. Most pay between $500 and $999 per year, with premiums ranging from around $200 for the smallest businesses to more than $17,000 for larger accounts.
“Cyber risk is now part of the day-to-day reality for small businesses,” Kroeger said. “What’s encouraging is that more owners are taking steps to protect themselves before something goes wrong.”
Insureon’s platform allows small businesses to compare quotes from top-rated carriers and purchase cyber coverage online, helping them find protection that fits their needs and budget. Learn more at www.insureon.com.
Headquartered in Chicago, Insureon is the largest independent agency for the online delivery of commercial insurance to small and medium-sized businesses and part of HUB International, the fifth largest insurance broker. Its e-commerce platform allows customers to easily compare insurance quotes from top-rated companies, buy policies, and manage their coverage.
Insureon is licensed in all 50 states and specializes in numerous industries. For more information, visit www.insureon.com.