Quick Summary
Best overall: Coalition - active insurance with free security monitoring from $500/yr. Best for tech companies: Embroker - tailored for startups and SaaS. Best established carrier: Hiscox - AM Best A-rated, online quotes in minutes. Best for high-risk industries: Chubb - comprehensive coverage for healthcare and finance. Best budget: CyberPolicy - instant quotes from multiple carriers.
A single data breach can cost a small business $108,000 on average. That number includes forensic investigation, customer notification, credit monitoring, legal fees, regulatory fines, and lost business during recovery. For most small businesses, that is an existential threat. Cyber insurance transfers that risk to a carrier that has the resources to manage breach response, fund recovery, and cover legal exposure.
The cyber insurance market has matured significantly. Modern providers do not just pay claims - they actively help prevent incidents. The best carriers offer free security scanning, endpoint monitoring, employee training, and incident response planning as part of the policy. Some even reduce premiums for businesses that implement recommended security controls. The days of cyber insurance as a passive safety net are over.
We evaluated seven cyber insurance providers based on coverage breadth, breach response capability, preventive security tools, pricing for small businesses, and claims handling reputation.
Our Top Recommendation
Coalition combines cyber insurance with active security monitoring, giving policyholders free vulnerability scanning, threat alerts, and incident response. Coverage starts at $500/yr for small businesses with up to $15M in limits.
Get a Free Coalition QuoteDisclosure: This article contains affiliate links. We may earn a commission at no extra cost to you when you purchase through our links. All opinions are our own.
1. Coalition
Coalition Best Overall
Coalition pioneered the concept of "active insurance" - combining traditional cyber coverage with continuous security monitoring. Every policyholder gets free access to Coalition Control, a security platform that scans your external attack surface for vulnerabilities, monitors the dark web for compromised credentials, sends real-time threat alerts, and provides remediation guidance. The company claims policyholders experience 64% fewer cyber claims than industry average because issues are caught before they become incidents. Coverage includes first-party and third-party liability, ransomware, social engineering, funds transfer fraud, and business interruption. The claims team includes in-house incident responders who activate within hours of a reported event.
- Coverage: Up to $15M per incident
- Starting price: From $500/yr for small businesses
- Pros: Free security monitoring platform, active risk reduction, fast incident response, covers social engineering and funds transfer fraud
- Cons: Newer carrier (founded 2017), may require security improvements for best rates, some industries excluded
- Best for: Tech-savvy small businesses that want insurance plus security monitoring in one package
2. Hiscox
Hiscox Best Established Carrier
Hiscox is a 120-year-old specialty insurer with an AM Best A rating and deep expertise in small business coverage. Their cyber insurance product covers data breaches, cyber extortion, business interruption, media liability, and regulatory defense costs. The online quote process takes about 10 minutes and can bind coverage immediately for many businesses. Hiscox includes a free cyber security consultation for policyholders and partners with incident response firms for breach handling. The carrier's financial strength means claims get paid reliably, and their small business specialization means underwriting is tailored for companies with under $10 million in revenue.
- Coverage: Up to $2M standard; higher limits available
- Starting price: From $250/yr for low-risk businesses
- Pros: AM Best A-rated, online instant quotes, fast binding, long track record, bundles with other business insurance
- Cons: Coverage limits lower than tech-focused carriers, less proactive security tools, standard exclusions apply
- Best for: Small businesses that want a trusted, established carrier with easy online purchasing
3. Embroker
Embroker Best for Tech Companies
Embroker specializes in insurance for technology companies, startups, and venture-backed businesses. Their cyber insurance product is designed around the specific risks that tech companies face: software vulnerabilities, cloud infrastructure breaches, API security incidents, and third-party data processing liability. The platform uses data-driven underwriting that evaluates your tech stack, security posture, and industry benchmarks to generate quotes quickly. Embroker also offers D&O, E&O, and EPLI policies, making it a one-stop shop for startup insurance needs. The digital-first approach means everything from quoting to claims is handled online.
- Coverage: Up to $10M; customizable limits
- Starting price: From $1,000/yr for startups
- Pros: Tech-specific underwriting, bundle with D&O and E&O, fast digital quoting, understands startup risk profiles
- Cons: Higher starting price, focused on tech (less ideal for traditional businesses), newer platform
- Best for: SaaS companies, startups, and tech businesses that need cyber plus other commercial lines
4. At-Bay
At-Bay Best Risk Assessment
At-Bay combines insurance with continuous risk monitoring using their InsurSec platform. Before issuing a policy, At-Bay performs a comprehensive security assessment of your external-facing infrastructure - scanning for open ports, misconfigured services, outdated software, and known vulnerabilities. This assessment continues throughout the policy period with monthly scans and alerts. At-Bay claims their technology-driven approach results in claims frequency 5x lower than the industry average. The carrier offers coverage for ransomware (including ransom payments), business interruption, data breach response, and social engineering. At-Bay works through brokers rather than direct-to-consumer.
- Coverage: Up to $15M per incident
- Starting price: From $750/yr through brokers
- Pros: Continuous security scanning, strong risk reduction, high coverage limits, covers ransomware payments, proven claims frequency reduction
- Cons: Must go through a broker, security scans may flag issues requiring remediation, newer carrier
- Best for: Businesses that want data-driven risk assessment and continuous monitoring as part of their policy
5. Travelers
Travelers Best Bundle Option
Travelers is one of the largest commercial insurers in the US and their CyberFirst product brings enterprise-grade cyber coverage to small businesses. The policy covers data breach response, network security liability, cyber extortion, business interruption, and media liability. As a major carrier with a $40 billion market cap, Travelers offers the financial stability and claims infrastructure that smaller carriers cannot match. The biggest advantage for many businesses is the ability to bundle cyber insurance with general liability, property, workers comp, and auto through a single carrier - simplifying management and often reducing total premium costs.
- Coverage: Up to $10M; customizable sub-limits
- Starting price: From $1,000/yr (varies by risk profile)
- Pros: Major established carrier, bundle with other lines, strong claims infrastructure, available through agents nationwide
- Cons: Less tech-forward than insurtechs, quoting requires an agent, fewer proactive security tools, traditional underwriting process
- Best for: Businesses that want cyber insurance bundled with other commercial policies from one trusted carrier
6. Chubb
Chubb Best for Regulated Industries
Chubb is the world's largest publicly traded property and casualty insurer, and their cyber products reflect that scale. For small businesses in regulated industries - healthcare, financial services, legal, and government contractors - Chubb offers coverage that specifically addresses regulatory compliance requirements including HIPAA, PCI DSS, SOX, and state privacy laws. The policy includes regulatory defense costs, fines and penalties coverage (where insurable by law), and specialized breach response for healthcare and financial data. Chubb's breach response team includes legal counsel experienced in regulatory notification requirements across all 50 states.
- Coverage: Up to $25M; higher for large enterprises
- Starting price: From $1,500/yr (industry-dependent)
- Pros: Best regulatory compliance coverage, global claims network, highest financial strength rating, industry-specific endorsements
- Cons: Higher premiums, traditional underwriting process, requires agent or broker, less suited for low-risk businesses
- Best for: Healthcare, financial services, and legal businesses with strict regulatory compliance needs
7. CyberPolicy
CyberPolicy Best Marketplace
CyberPolicy is not a carrier itself but a marketplace that connects small businesses with multiple cyber insurance providers to find the best coverage at the lowest price. Answer a series of questions about your business, industry, and data handling, and CyberPolicy returns quotes from multiple carriers in minutes. The platform also includes a free cybersecurity assessment and recommendations for security improvements that can lower your premiums. For businesses that want to comparison shop without contacting multiple brokers, CyberPolicy simplifies the process into a single online experience.
- Coverage: Varies by carrier match
- Starting price: From $500/yr depending on carrier
- Pros: Multiple carrier quotes in one place, free cyber assessment, easy comparison, helps find lowest price
- Cons: Not a carrier (depends on partner quality), less control over policy details, limited post-purchase support
- Best for: Small businesses that want to compare quotes from multiple carriers quickly
Side-by-Side Comparison
| Provider | Starting Price | Max Coverage | Security Tools | Quote Speed | Best For |
|---|---|---|---|---|---|
| Coalition | $500/yr | $15M | Full platform | Minutes | Overall value |
| Hiscox | $250/yr | $2M | Consultation | 10 minutes | Established carrier |
| Embroker | $1,000/yr | $10M | Assessment | Minutes | Tech companies |
| At-Bay | $750/yr | $15M | Continuous scan | Via broker | Risk assessment |
| Travelers | $1,000/yr | $10M | Basic | Via agent | Bundle savings |
| Chubb | $1,500/yr | $25M | Basic | Via broker | Regulated industries |
| CyberPolicy | $500/yr | Varies | Assessment | Minutes | Comparison shopping |
Ready to get started?
Compare your top picks side by side and choose the best fit for your business. Click any link above to try them free.
Get Matched to the Right ToolHow to Choose
Want insurance plus security monitoring? Coalition. The free security platform reduces your risk while the insurance covers what gets through.
Want a trusted name you recognize? Hiscox. AM Best A-rated, 120-year track record, instant online quotes starting at $250/yr.
Run a tech company or startup? Embroker. Purpose-built for SaaS and tech businesses with bundled D&O and E&O options.
In healthcare, finance, or legal? Chubb. Best regulatory compliance coverage including HIPAA, PCI DSS, and state privacy laws.
Want to compare prices fast? CyberPolicy. Get quotes from multiple carriers in one session without calling agents.
Frequently Asked Questions
How much does cyber insurance cost for a small business?
Cyber insurance for small businesses typically costs $500-$5,000 per year depending on your industry, revenue, and the amount of sensitive data you handle. Low-risk service businesses might pay $500-1,000 for $1 million in coverage. Healthcare and finance businesses pay more.
What does cyber insurance cover?
Cyber insurance typically covers data breach response costs, business interruption losses from cyber attacks, ransomware payments and recovery, legal defense and regulatory fines, third-party liability, social engineering and funds transfer fraud, and media liability.
Do small businesses really need cyber insurance?
Yes. 43% of cyber attacks target small businesses, and the average cost of a data breach for a small business is $108,000. Most small businesses cannot absorb that cost. Many enterprise clients and government contracts now require vendors to carry cyber insurance.
What is the difference between cyber insurance and general liability?
General liability covers physical injuries, property damage, and advertising claims. Cyber insurance covers digital risks including data breaches, ransomware, system outages, and liability for compromised customer data. They cover completely different risk categories and you need both.
Protect Your Business Before a Breach Happens
Coalition combines cyber insurance with free security monitoring. Get coverage from $500/yr plus a vulnerability scanning platform that catches threats before they become claims.
Get a Free Coalition Quote