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Cyber insurance is no longer a fringe purchase for small businesses. New data from Insureon shows adoption grew 50% among its customers from 2023 to 2025. Completed policy purchases rose 59% over the same period.
Insureon is part of HUB International, the fifth-largest global insurance broker. Its customer base skews small sole proprietors and firms with fewer than five employees dominate its book, and those are the fastest-growing segment.
The Numbers Behind the Shift
Applications for cyber cover grew just 8.8% over the two years. Purchases grew far faster. That gap tells a specific story: businesses already in the consideration phase are converting. Fewer are stopping at the quote.
“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.”
Early 2026 data shows both applications and purchases continuing to climb.
Who Is Buying
Growth is spreading well beyond technology firms. Livery and transportation services led at 106%. Medical spas followed at 79%. Lawyers came in at 52%. These sectors share a common thread: digital payments, customer data, and dependence on cloud platforms.
Sole proprietors posted the sharpest growth of any size category, up 89% from 2023 to 2025. By geography, Georgia led all states at 171%, followed by Colorado at 122% and North Carolina at 63%.
Bundling Becomes the Norm
How small businesses buy cyber cover is shifting as much as whether they buy it. The share of Insureon customers purchasing cyber alongside other policies rose from 68% in 2023 to 81% in 2025. By 2025, the most common bundle will combine cyber, general liability, and professional liability in a single package.
“Cyber incidents don’t happen in isolation,” Kroeger said. “What starts as a data issue can quickly turn into a liability claim.”
That bundling trend reflects what our podcast conversation with Kyle Jude of Veracity Insurance Solutions laid out earlier this year: cyber risk now overlaps with every core business risk small owners face.
Price Is Not the Barrier
Affordability concerns have not vanished, but Insureon’s data suggests they are not the main obstacle. Most of its small business customers pay between $500 and $999 per year. Premiums start around $200 for the smallest operations. The upper end, above $17,000, applies to larger accounts well outside the typical small business profile.
That pricing range tracks with what we reported in our coverage of c360’s small business cyber policy and Boxx’s CyberBoxx Assist launch, both of which targeted affordability as the key barrier to small business uptake.
The Gap That Remains
The adoption surge is real, but the protection gap is not closed. A Coalition study found that 64% of small businesses still do not consider themselves attractive targets, even though nearly 79% had already experienced at least one attack in five years. Our coverage of the top five reasons small businesses need cyber insurance and the seven deadly sins of SMB cybersecurity both documented how underestimation drives under-insurance.
Insureon’s data shows that the gap is narrowing. The question is whether it narrows fast enough.
FAQ – Small Business Cyber Insurance
Insureon data shows adoption among its customers grew 50% from 2023 to 2025. Completed purchases rose 59% over the same period.
Livery and transportation services led at 106%, followed by medical spas at 79% and lawyers at 52%.
Most Insureon customers pay between $500 and $999 per year. The smallest businesses can pay as little as $200 annually.
Cyber incidents often trigger liability claims. By 2025, the most common purchase will combine cyber, general liability, and professional liability cover.
Yes. They are the fastest-growing buyer segment, up 89% from 2023 to 2025.
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- Companies Are Buying Cyber Insurance & Making (Repeat) Claims, But Ransomware Is Not Covered By About 30% of the Policies: Delinea Survey(Opens in a new browser tab)
- Antiquated Regulations Against “Cyber Insurance Bundling” Slow Innovation(Opens in a new browser tab)