Cyber insurance premiums for small businesses have doubled in the past year following a record number of ransomware attacks targeting companies with fewer than 500 employees.
The Crisis
Small businesses accounted for 62% of all ransomware victims in 2025, up from 43% in 2023. Average ransom demands have reached $250,000, with many small businesses unable to recover even after paying.
Coverage Changes
Insurers are imposing stricter requirements including mandatory multi-factor authentication, endpoint detection, and employee training before issuing policies.
- Premiums doubled year-over-year
- 62% of ransomware targets are small businesses
- Average ransom: $250,000
- Stricter security requirements for coverage
